Which of the following statements about accounting concepts are correct?
(1) The money measurement concept is that only items capable of being measured in monetary terms can be recognised in financial statements. (2) The prudence concept means that understating of assets and overstating of liabilities is desirable in preparing financial statements. (3) The historical cost concept is that assets are initially recognised at their transaction cost. (4) The substance over form convention is that, whenever legally possible, the economic substance of a transaction should be reflected in financial statements rather than simply its legal form. A (1), (2) and (3) B (1), (2) and (4) C (1), (3) and (4) D (2), (3) and (4)
