WAEC Financial Accounting 2000 Theory question 104

4. (a) What are accounting concepts? (b) State the accounting concept or convention which best explains each of the following statements: (i) Unless there is an evidence to the contrary, accounting assumes that a business will operate into the foreseeable future. (ii) Revenues and expenses are recognised as they are earned or incurred and not when money is received or paid. (iii) The accounting treatment of items should be continuously applied from one accounting period to the next. (iv) A business should not lay claim to any profits before they have been earned with reasonable certainty but should anticipate future losses. (v) An accounting statement should not be influenced by the personal bias of the person preparing it (vi) The assumption that for reporting purposes the life of an enterprise can be divided into discrete time period.