Across
- 3. The business must report and adjust for losses or liabilities that are likely to incur, even though the losses or liabilities have not been confirmed yet
- 4. All expenses incurred in the accounting period must be matched against the income earned in the same accounting period
- 5. Life of the business can be divided into different regular intervals for presentation of financial statements
- 7. The business should be consistent in applying its accounting policy from period to period to ensure meaningful comparability of financial performance across the financial periods
- 8. Revenue should only be recognised when (or as) the goods are sold, or the services are provided to a customer
- 10. An item is considered material/significant if it affects the decision-making process of the business and therefore should be considered an asset
- 11. Revenue is recognised in the period when earned and expenses in the period when incurred regardless of whether money has been received or paid
Down
- 1. All business transactions should be recorded at historical cost
- 2. Business and owner are treated as separate entities and all transactions are recorded from the business point of view
- 4. Only transactions that can be expressed in monetary terms can be recorded in the books
- 6. All business transactions recorded should be supported by reliable and verifiable supporting documents/evidences
- 9. Assumes that the business has an indefinite economic life and will continue to operate indefinitely