ECONOMICS

Detailed explanation-1: -An entity prepares financial statements on a going concern basis when, under the going concern assumption, the entity is viewed as continuing in business for the foreseeable future.

Detailed explanation-2: -The time period principle (or time period assumption) is an accounting principle which states that a business should report their financial statements appropriate to a specific time period.

Detailed explanation-3: -The going concern concept is a fundamental principle of accounting. It assumes that during and beyond the next fiscal period a company will complete its current plans, use its existing assets and continue to meet its financial obligations.

Detailed explanation-4: -The full disclosure principle states that a company must report the details behind the financial statements that would impact users decisions. These disclosures are often found in the footnotes of the statement.

Detailed explanation-5: -The Full Disclosure Principle states that all relevant and necessary information for the understanding of a company’s financial statements must be included in public company filings.