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

Describe about expense, Q. Describe about Expense? Expense -- an expend...

Q. Describe about Expense? Expense -- an expenditure that is chargeable against revenue during an accounting period.An expense leads to the reduction of an asset. All expenditu

Branches of accounting, introduction,features,objectives,types of branches,...

introduction,features,objectives,types of branches,difference between branches and departments

Over time , What if the public holiday falls on a rest day? how to pay and ...

What if the public holiday falls on a rest day? how to pay and which one is?

After the closing entries are posted to the ledger, After the closing entri...

After the closing entries are posted to the ledger, each revenue account will have a zero balance: a. a zero balance, b. a debit balance, c. a credit balance, or d. e

How to treat entry , Assume we had given tour advance to party how to treat...

Assume we had given tour advance to party how to treat entry and which head have to given expenditure? Ans) Cash/Bank a/c DR To Party(name)a/c (Advance Paid For Tour)

Desrocher ltd. issued an instalment note on january 1, Desrocher Ltd. issue...

Desrocher Ltd. issued an instalment note on January 1, 2014 (with a required yield of 9%), in exchange for land that it purchased from Safayeni Ltd. Safayeni's real estate agent

Identify the errors, Company A has only been in existence for two full year...

Company A has only been in existence for two full years as a public company. Prior to this, it was a segment of large multinational and was spun off as stand-alone, public company.

Show account titles and explanation column in journal, Account titles and e...

Account titles and explanation column The first row of an entry shows the account debited. The second row shows the account credited. Notice that we notch the credit account t

Explain statement of retained earnings, Q. Explain Statement of retained ea...

Q. Explain Statement of retained earnings? The statement of retained earnings demonstrates the change in retained earnings between the beginning and end of a period e.g. a mont

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