Name the Accounting Theory

The activities of a business are separate from the actions of the owner. All transactions are recorded from the point of view of the business

• Accounting Entity Theory

• Accounting Period Theory

• Going Concern Theory

• Monetary Theory

A business is assumed to have an indefinite economic life unless there is credible evidence that it may close down.

• Accounting Entity Theory

• Accounting Period Theory

• Going Concern Theory

• Monetary Theory

The life of a business is divided into regular time intervals.

• Accounting Entity Theory

• Accounting Period Theory

• Going Concern Theory

• Monetary Theory

Accounting information recorded must be supported by reliable and verifiable evidence so that financial statements will be free from opinions and biases.

• Historical Cost Theory

• Objectivity Theory

• Materiality Theory

• Monetary Theory

Only business transactions that can be measured in monetary terms are recorded.

• Historical Cost Theory

• Objectivity Theory

• Materiality Theory

• Monetary Theory

Transactions should be recorded at their original cost.

• Historical Cost Theory

• Objectivity Theory

• Materiality Theory

• Monetary Theory