Which Concept of Financial Reporting Is Being Described

question 27

Essay

Which concept of financial reporting is being described?
$\begin{array}{c}\begin{array}{|l}\hline\text { Assumption }\\\hline\\\\\hline\\\\\hline\\\\\\\\\hline\\\\\hline\\\\\\\hline\end{array}\begin{array}{|l|}\hline \text {Situation}\\\hline \text {A reporting entity will continue its operations into the}\\\text { foreseeable future.}\\\hline \text {Record transactions when they have been settled in cash }\\\text {as of the balance sheet date.}\\\hline \text {Measured in physical quantities, a company should be}\\\text { capable of producing as much at the end of an}\\ \text {accounting period as it was able to produce at the}\\\text { beginning of that period.}\\\hline \text {Record transactions even if they have not been settled in }\\\text {cash as of the balance sheet date.}\\\hline \text {A company should have as much resources in monetary}\\\text { terms at the end of an accounting period as it had at the }\\\text {beginning of that period.}\\\hline\end{array}\end{array}$

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Definitions:

Determinism

The belief in philosophy that every event, including decisions on moral issues, is fully predetermined by preceding causes.

Compatible

The ability of two or more concepts, systems, or devices to work together without conflict or incompatibility.

Sartre

A 20th-century French philosopher, playwright, novelist, and political activist, known for his leading role in existentialism and his assertion that "existence precedes essence."

German Occupation

Refers typically to the military control and governance of territories by German forces during conflicts such as World War I and World War II.