1. What are the conventional rules made of?

2. Name 4 Boundary Rules

3. Name 6 measurement rules
4. Name 4 Ethical Rules
5. Explain 2 rules of Boundary Rules
6. Explain 2 Rules of measurement Rules.
7. Explain 2 rules of Ethical Rules

Answers
1.Conventional rules are made of Boundary rules, measurement rules and ethical rules categories.

2. boundary rules, measurement rules and ethical rules

3. Money measurement, historic cost, realisation, matching, dual aspect and materiality.

4. Prudence, Consistency, Relevance and Objectivity.

5. Periodicty (a period in which transactions are recorded but usually 12 month period) and Going
Concern (Assumption that the business will keep on operating as usual in the near future-12 months
down the line)

6. Measurement rules: Historic cost: we need the original price paid to measure change in price over
time.

Dual Aspect: Any transaction will involve someone giving something and someone receiving it so the
rule states that every transaction has two effects. and as a result double-entry bookkepping has
evolved.

7. Prudence: I.e. when usure underestimating income and overestimating expenses; that way they
avoid taking out too much cash out of the business.

And Consistency: Applying the policies and rules all the time unless there's a justifiable reason for
change.