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.

Posted Date: 4/15/2013 1:37:26 AM | Location : United States

Ask an Expert

Related Discussions:- Accounting concepts, Assignment Help, Ask Question on Accounting concepts, Get Answer, Expert's Help, Accounting concepts Discussions

Write discussion on Accounting concepts
Your posts are moderated

Write your message here..

Related Questions

Account, #quthe books of deven verma could not be tallied.the accountant tr... #quthe books of deven verma could not be tallied.the accountant transferred the difference of Rs.1270 in the suspense account on the debit side the following mistakes were found la

Aging Approach., At the end of 2011 Samuda reported a balance in Account re... At the end of 2011 Samuda reported a balance in Account receivable of $620,000 and estimated that $12,400 of this account would likely be uncollectible. The allowance for doubtful

Determine about the purchasing procedures, Determine the Purchasing Procedu... Determine the Purchasing Procedures Alarge company would use a "purchasing agent" who heads purchasing department. Small companies would use manager/owner, etc. Seller recei

Uses of technology in accounting, Q. Uses of technology in accounting? ... Q. Uses of technology in accounting? The computers of persons in a given building or department are frequently connected in a Local Area Network (LAN). These persons are able t

What are derivatives?, Derivative instrument is an asset which develops i.e... Derivative instrument is an asset which develops i.e. takes its origin from another asset. The simplest form of derivative is a forward contract, "It is an agreement to buy or s

Departures from cost basis of inventory measurement, Q. Departures from cos... Q. Departures from cost basis of inventory measurement? In general companies must use historical cost to value inventories and cost of goods sold. But some circumstances justif

Full form of wcc, Full form= Winter compensation from contributions. Full form= Winter compensation from contributions.

Inflation budget, An inflated budgeted expense account An inflated budgeted expense account

Calculate present value, Windsor Company will receive $100,000 in 7 years. ... Windsor Company will receive $100,000 in 7 years. If the appropriate interest rate is 10%, the present value of the $100,000 receipt is ? Answer: PV = FV (PVIF) = $100,000 x 0.5132

Accounting Concept, what is the implication of applying accounting concepts... what is the implication of applying accounting concepts wrongly