POA Theories C1

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Across
  1. 3. __________ theory states that the life of a business is divided into regular intervals for the purpose of preparing financial statements.
  2. 6. __________ theory states that the owner and business are separate entities. All transactions are recorded from the point of view of the business.
  3. 7. __________ theory states that only business transactions that can be measured in monetary terms are recorded.
  4. 8. __________ business buys and sells goods to customers
  5. 12. __________ theory states that business accounting method must be the same from year to year to ensure meaningful comparison.
  6. 13. Accountants can exercise integrity by being __________ & honest in all professional relationships
  7. 14. __________ theory states that income/expense is only recognized and recorded when it is earned/incurred regardless of whether cash is received/paid.
  8. 18. Accountants are stewards of the businesses who set up the __________ to provide relevant timely information to stakeholders for decision-making.
  9. 19. Accountants adapt, solve problems, think critically and provide accounting and non-accounting information to __________.
Down
  1. 1. Accounting is an information system that __________ for stakeholders to make informed decisions
  2. 2. __________ business provides services to its customers
  3. 4. __________ theory states that a transaction is considered material if it makes a difference to the decision-making process.
  4. 5. __________ theory states that revenue is earned when goods have been delivered or services have been provided.
  5. 9. __________ theory states that business is assumed to operate forever unless there is credible evidence that it may close down.
  6. 10. Accountants are objective when he will not let bias and conflict of interest override his __________
  7. 11. __________ theory states that transactions should be recorded at their original cost.
  8. 15. __________ theory states that expenses incurred must be matched against income earned in the same period to determine the profit for that period.
  9. 16. __________ theory states that all business transactions must be supported by verifiable evidence so that financial statements will be free from biases.
  10. 17. __________ theory states that accounting treatment chosen should be the one that least overstates assets and profits and least understates liabilities and losses.