going concern:In the absence of evidence to the contrary,a business is assumed to have an indefinite life and will not be sold or liquidated.owner's equity:equity is the residual interest in the assets of an entity that remains after deducting tis liabilities.perpetual inventory:a method of controlling stock in which the movement of each item is recorded,so that the firm always knows the numbers and value of stock remaining in each of its warehouses.double entry system:a system of recording accounts where each sale or purchase is shown as having an effect on both the DEBIT COLUMN and the CREDIT COLUMN of an account.income summary account :the account that presents financial performance by matching revenue and expenses to arrive at a profit over a period of time.accrual system:under the accrual system,the effects of transaction and other events are recognised when they occur(and not as cash or its equivalent is received or paid) and they are recorded in the accounting records and reported in the financial statements of the periods to which they relate.