Accounting Principle

Going Concern: Definition, Assessment, Indicators, Example, Disclosure

Definition: Going concerned is the concept that the entity’s Financial Statements are prepared based on the assumption that the entity operation is still operating normally in the next foreseeable period. This foreseeable period normally has twelve months from the ending period of Financial Statements. In order to assume that the entity has no going concern …

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Periodicity Assumption – Definition, Advantage, and Example

Definition: Periodicity assumption is the accounting concept used to prepare and present Financial Statements into the artificial period of times required by internal management, shareholders, or investors. What does an artificial period mean? Well, most of the financial statements are prepared based on fiscal years. Sometimes, based on tax years for the tax purpose or …

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