Under this concept, the business is assumed to continue to exist for an indefinite period of time.

Under this concept, some costs are initially recognized as assets and recognized only as expenses when the related revenue is recognized.

It is the official accounting standard setting body in the Philippines.

Businesses are required by to law to file tax returns with this government agency

Under this concept, assets are initially recorded at their acquisition cost.

Which of the following are considered enhancing qualitative characteristics?

I. Comparability

II. Verifiability

III. Materiality

IV. Understandability

This qualitative characteristic means that financial statements are neither materially misstated nor important information is omitted.

This qualitative characteristic enables users to make comparisons to identify and understand the similarities in, and the differences among, reported information.

The accounting standards used in the Philippines are specifically referred to as the

The business owner inappropriately included his personal expenses with the expenses of the business. Which of the following concepts is violated?

The income of the business during the current year is low. To report profit, the owner deliberately did not recognize depreciation expense. Which of the following qualitative characteristics is violated?

Inventories acquired for ₱100,000 are deliberately valued at a selling price of ₱300,000. Which of the following principles is most likely not violated?

A business sells goods to a customer who promises to pay for the purchase price next year. The business records the sale this year, when the transaction has occurred, rather than waiting until next year when the sale price is collected. This is an application of which of the following accounting principles?

Right now, the business owner does not expect that its business will end in the foreseeable future. This accounting assumption is called

A business purchased a small stapler. The stapler is expected to be used for a long period of time. However, the business immediately expensed the cost of the stapler rather than recognizing it as an asset to be depreciated over the stapler’s useful life. The business is invoking which of the following accounting concepts?

A business acquired goods that are held for resale. Instead of expensing immediately the cost of the goods, the business initially recognized them as assets. As each good is sold, the business recognizes the cost of the good sold as expense. This is an application of which of the following accounting concepts?

This accounting principle entails trade-offs to be made between the level of detail and the conciseness of information presented in the financial statements, keeping in mind the costs of preparing the information.

This concept requires a business to apply the same accounting policies for like items and retain those accounting policies from period to period.

Big companies often round-off peso amounts when presenting financial statements. This practice is acceptable because of which of the following concepts?