There are four accounting assumptions throughout. The four assumptions are separate entity, going concern, units of currency, and accounting period. The first assumption is the separate entity is when the accounts of a business are not affected by the business itself because it is entirely separate; however, the name of the company is on the account. The second one is the going concern assumption, which is general enough to the matter of the business staying open because it is still trading. The next assumption is the units of currency. This assumption states that everything in the account holds a single unit of measurement of monetary value. The last assumption is the accounting period, which the company will file to the fiscal year. Then after the accounting, assumptions would be the principles of accounting. The principles are cost, revenue, matching, and disclosure principles. These principles are used by accountants to judge how the money is made and how it is noted. The first principle is cost, which means the company must record assets cost instead of
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Generally Accepted Accounting Principles, separate entity