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Question 2 :
You have been intoduced by your Financial Controller to the two newly
appointed Accountants in your organization who will be heading your
factory operations and your head office administration. One of them is a
Chartered Accountant and the other is a qualified Association of Certify
Management Accountants (ACMA). Owing to unforeseen circumstances,
the Financial Controller was admitted to Hospital at the 11th hours before
the Board of Directed meeting. You have been requested by your CEO to
appear in front the Board members :
▪ Money Measurement
▪ Going Concern
▪ Periodicity
▪ Materiality
▪ Dual Aspect
Every transaction has dual impact on accounting records. Based on
the formula/equation :
Assets = Equalities
▪ Conservatism
▪ Prudence
To recognize revenue only when it’s earned but also to provide for
anticipited loss before it is incurred
▪ Consistency