The time-period assumption says that a business will continue into the future, so the current market value of its assets is not important.<br>Solvency shows how easily a business can pay bills or debts when they are due.<br>Return on assets is a calculation of earnings before interest and tax divided by total assets.<br>The objectivity principle is that revenue is recognized in the accounting period in which it is earned.<br>The balance sheet tells you how much money the company owes<br>The unit-of-measure assumption is that all financial transactions are in a single monetary unit or currency.<br>If companies retain part of their profits, this money no longer belongs to the owners.
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