Accounting concepts, Accounting Basics

Assignment Help:

Accounting concepts are used in relation to accounting procedures for a specific business enterprise.  Some of these are:

Going concern

Verifiable

Accounting period

Accounting entity

Comparable

Historical cost

Accounting equation

Monetary

Prudence

Timeliness

Materiality

Disclosure

For each statement below, select the most appropriate accounting concept or convention (from the list above) and write your answer in the box next to the description.  Please note the following:

  • Use a concept once only.
  • There are more concepts given than needed.

1     

All relevant information and explanations about a business have been included in its financial reports.

 

2     

This concept results from the need to report profit for a particular, arbitrary period of time.

 

3     

It is customary to consider the business enterprise as separate from the personal affairs of the owner so that profit can be determined.

 

4     

This requires understating rather than overstating income and expense amounts that have a degree of uncertainty, so that financial statements do not overstate the company's financial position.

 

5     

Transactions are recorded using the amount paid (or payable) at the time of the transaction.

 

6     

For an accounting record to be made it must be able to be expressed in dollar terms.

 

7     

The treatment of an item in the financial reports of a business depends on its relevance and importance.

 

8     

This concept implies that financial statements do not represent a company's worth if its assets were to be liquidated, but rather that the assets will be used in future operations.

 


Related Discussions:- Accounting concepts

Emerging role of accounting, The past of accounting specifies the evolution...

The past of accounting specifies the evolutionary pattern that reflects changing socioecoiom conditions and the enlarged reasons is that accounting is applied. In  the  current  co

Difference among financial and taxable income , The following difference am...

The following difference among financial and taxable income were reported by Dider Corporation for the current year (a)    Excess of tax depreciation over book depreciation-------

Cash flow information: direct and indirect methods, Cash flow information: ...

Cash flow information: Direct and indirect methods The comparative year-end balance sheets of Sign Graphics, Inc., revealed the following activity in the company's current accou

Explain double-entry procedure, Q. Explain double-entry procedure? The ...

Q. Explain double-entry procedure? The double-entry procedure maintains the accounting equation in balance. The dual recording process generates two sets of accounts those with

What is meant by cash book and day book and general leder, Cash Book: It is...

Cash Book: It is one of the Subsidiary Book which is usually used by any business organisation to record all the cash transactions which helps to know the cash position as and when

In recent years, In recent years, there has been a lot of media coverage ab...

In recent years, there has been a lot of media coverage about the funding status of pension plans for state employees. In many states, the amount of money invested in employee pens

Abc''s product information current product, ABC's Product information Cu...

ABC's Product information Current Product Expansion Product (estimate) Selling Price $14.50 $ Units produced and expected to be sold 80,000 5,000 Machine Hours 40,000 5,00

Research state and local governmental financial accounting, You recently la...

You recently landed your dream job working for the state as an accountant. You are given the task to research several state and local governmental financial accounting issues. F

What do you mean by supplies on hand, Q. What do you mean by Supplies on ha...

Q. What do you mean by Supplies on hand? Supplies on hand approximately each business uses supplies in its operations. It may classify supplies merely as supplies to include al

What do you mean by aging, Q. What do you mean by Aging? Aging -- a pro...

Q. What do you mean by Aging? Aging -- a process where accounts receivable are sorted out by age (typically current, 30 to60 days old, 60 to 120 days old and so on.) Aging perm

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd