Observation

Many candidates attempted this question on the Accounting Concepts but, the performance was unimpressive. The expected answers include:

(a)        Accrual concept: This concept states that revenues and costs are recognized as they are earned or incurred, not as when money is received or paid;        

(b)        Business entity concept:This provides that the financial activities of a firm be kept separate from the personal affairs of its owner;               

(c)        Dual aspect concept: This provides that every business transaction should havetwo entries in the books of accounts; one being a debit and the other being a credit;   

(d)       Periodicity concept: The concept provides that preparation and reporting of
accounting information should be done at regular intervals to allow users to have access to information at  all times, since decisions may be taken at any time;                                                                                                                                                                            
(e)        Going concern concept:This assumes that a business will continue to operate intothe foreseeable future, unless something contrary happens;