Accounting profit measures:Group of answer choicesthe excess of income over expenses for the period.the increase in the value of the entity over the period.taxable income minus allowable deductions.the increase in the bank balance over the period.

Meaning of Accounting

economic profit would be equal to accounting profit whenedit

Under the accrual basis of accounting, revenues are reported in the accounting period when the

The accounting period assumption means that:Group of answer choicesthe cash approach is always used to measure profits.the activities of the owner are assumed to be separate from those of the business.the accrual approach is always used to measure profits.for reporting purposes the economic life of an entity is divided into arbitrary time periods.

The accounting equation can be used to analyse transactions for a: Group of answer choices company. sole trader. not-for-profit entity. all of the above.