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

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

Examples of deferred revenue expenditure? , What are examples of deferred r...

What are examples of deferred revenue expenditure? Ans) It is an expenditure the advantage of which will be realized over a period and not during the present period. Ex-Heavy Ad

Explain sales return, Q. Explain sales return? A sales return is mercha...

Q. Explain sales return? A sales return is merchandise return by a buyer. Buyers and Sellers regard a sales return as a cancellation of a sale. Otherwise some customers keep un

What is accounts receivable, Q. What is Accounts receivable? Accounts r...

Q. What is Accounts receivable? Accounts receivable as well called trade accounts receivable are amounts owed to a business by customers. An account receivable occurs when a co

Preoaration of journal entries for partnership liquadation.., tugade ,masin...

tugade ,masinsin and biore are all famous athletes who have been operating a sports memorabilia store for how many years .The partnership decided to liquadate its operation rather

Cost accounting, The industrial revolution in England presented a challenge...

The industrial revolution in England presented a challenge to the development of accounting like a tool of industrial management. Costing techniques were urbanized as guides to man

Ledger, “Ledger is said to be the principal book entry and the transactions...

“Ledger is said to be the principal book entry and the transactions can even be directly entered into the ledger 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

Reasonable accuracy, Some the other concepts, as for example: the Matching ...

Some the other concepts, as for example: the Matching concept, the Dual Aspect concept and the Realization concept are discussed in further sections, and as they have not been take

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