MR FEMI SOLUTIONS UPDATES🎓👑👑

*NUMBER 2* (a) Accounting Concept: Going Concern Concept Explanation: This concept assumes that the business will continue to operate for the foreseeable future and will not be liquidated. Therefore, assets are recorded and used over their useful lives rather than being valued at liquidation prices. (b) Accounting Concept: Business Entity Concept Explanation: This concept states that the business is treated as a separate entity from its owners. Personal transactions of the owners must not be mixed with business transactions when preparing financial accounts. (c) Accounting Concept: Matching Concept Explanation: This concept requires that expenses incurred in generating revenue must be matched with that revenue in the same accounting period to determine the correct profit or loss. (d) Accounting Concept: Prudence (Conservatism) Concept Explanation: This concept states that expected losses should be provided for as soon as they are foreseen, while profits should not be anticipated. Hence, provision is made for doubtful debts. (e) Accounting Concept: Consistency Concept Explanation: This concept requires that once an accounting method is adopted, it should be used consistently from one period to another to allow meaningful comparison of financial results.

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