Accounting information pertains to entities, which are circumscribed areas of interest. In financial accounting, the entity is the specific business enterprise. The enterprise is identified in its financial statements.
2.Going Concern:
An accounting entity is viewed as theoretically continuing in operation in the absence of evidence to the contrary.
3.Time Periods:
The financial accounting process provides information about the economic activities of an enterprise for specific time periods that are shorter than the life of the enterprise. Normally, the time periods are of equal length to facilitate comparisons. The time periods is identified in the financial statements.
4.Measurement:
Financial accounting measures monetary attributes of economic resources and obligations and changes in them. The unit of measure is identified int the financial statements. Transactions are recorded using historical cost information.
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