Chapter 1, Problem 4QS

To determine

Accounting:

Accounting is the technique of recording the financial events and transaction occur in a business while doing any business activity. Accounting is one of the major activity done in any organization, accounting is necessary to see the present as well as the future position of an organization.

Accounting Principle: Accounting principle are the special guidelines that should be followed by the company for recording the financial transactions of the company. The accounting principle of one country is different from other. As they are based on the economic factor of the countries.

Accounting Assumption: An accounting assumption is the statement that made by the experienced accountants. Although no evidence is available for these assumptions, but they are regularly followed in accounting. For example business entity assumption, going concern assumption and many more.

Accounting Constraint: The accounting constraints are the limitation that seen by the accountant while providing accounting information. The accounting constraint allow certain changes from the accounting principles while reporting information of company. The four main accounting constraint are cost and benefit, materiality, industry practices, and conservatism.

To identify: The each given terms come under (a) accounting principle or (b) accounting assumption or (c) accounting constraint.