Accounting 

Entity

Economic activity can be identified with a 

particular unit of accountability. In other word, 

the activity of a business enterprise can be kept 

separate and distinct from its owners and any other 

business unit. 

Going-

concern

The going-concern concept, which holds that the entity will 

remain in operation for the foreseeable future.

Under the going concern concept, accountants assume that the business will remain in operation long

enough to use exist assets for their intended 

purpose.

Time-

period

It implies that the economic activities of an enterprise can be 

divided into artificial time periods of 

equal length,most common are monthly, quarterly, and yearly．

Monetary 

Unit

This assumption implies that the monetary unit is the most 

effective means of expressing to interested parties’ changes in capital and exchanges of goods and services.