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

Goal of financial reporting, Q. Goal of financial reporting? The second... Q. Goal of financial reporting? The second goal of financial reporting is to provide information to help present and potential investors and creditors and other users in assess

Accounting concept, define accounting. Explain the accounting concepts whic... define accounting. Explain the accounting concepts which guide the accountant at the recording stage.

How to deal with this problem?, How to create account for barter transactio... How to create account for barter transactions? As My Company is providing a service to another company and that company is reimbursing us with his service.

Starting inventory and net cost of purchases, Q. Starting inventory and net... Q. Starting inventory and net cost of purchases? Hanlon's start inventory (USD 24000) plus net cost of purchases (USD 166000) is equivalent to cost of goods available for sale

Frank Woods Business Accounting, J Green''s financial position at 1 May 200... J Green''s financial position at 1 May 2008 was as follows bank 2,910 cash 160 equipment 5,900 premises 25,000 creditors R smith 890 t thomas 610 debtors j car

Enumerate about the income summary account, INCOME SUMMARY ACCOUNT This... INCOME SUMMARY ACCOUNT This is a temporary account which used to summarize the balances of temporary revenue and expense accounts. This is also known as a clearing account. The

Explain weighted-average inventory, Q. Explain Weighted-average inventory? ... Q. Explain Weighted-average inventory? Weighted-average: Ensuing inventory is priced using a weighted-average unit cost. In perpetual inventory procedure a new weighted-average

State unemployment tax, State unemployment tax This is referred to as S... State unemployment tax This is referred to as SUTA (State Unemployment Tax Act). The taxes are paid to the state in which employer conducts business. This rate varies from stat

Pre acquisiton dividend, on which shares pre acquisiton dividend received on which shares pre acquisiton dividend received

Audit Reports, Why it is important for independent auditor to be a member o... Why it is important for independent auditor to be a member of a professional body?