Components of a Conceptual Framework
- What are postulates?
- Discuss the characteristics of postulates.
- Discuss the basic accounting postulates of going concern, separate business entity, periodicity, and the monetary unit.
- How do basic postulates and broad principles differ?
- What is the revenue recognition principle?
- What is the expense recognition principle?
- Why is the historical cost principle used in accounting?
- Why is consistency important to the accounting process?
- What is meant by "objectivity" in accounting?
- What is the role of materiality in accounting?
- What is meant by conservatism?
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