132716
Description
Mind Map by hannahsophie.austin, updated more than 1 year ago
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Created by hannahsophie.austin
over 11 years ago
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Accounting Concepts
- Going Concern: -
- The assumption that the Business
is going to continue in the
foreseeable future.
- The assumption that the Business
is going to continue in the
foreseeable future.
- Accruals (Matching): -
- The matching of costs and revenues
to the final accounts in which goods
and services were used.
- The matching of costs and revenues
to the final accounts in which goods
and services were used.
- Consistency: -
- The continued adoption of policies
for dealing with financial records.
- The continued adoption of policies
for dealing with financial records.
- Prudence: -
- Where losses are provided for immediately
in the financial records but profits are not
recognised until they have been realised.
- Where losses are provided for immediately
in the financial records but profits are not
recognised until they have been realised.
- Materiality: -
- Where items with a low monetary are
not recorded individually.
- Where items with a low monetary are
not recorded individually.
- Duality: -
- The principle that every business
transaction has two aspects and is recorded
as a DEBIT and a CREDIT.
- The principle that every business
transaction has two aspects and is recorded
as a DEBIT and a CREDIT.
- Business Entity: -
- The assets and liabilities of the owner
are kept separate from the assets and
liabilities of the Business.
- The assets and liabilities of the owner
are kept separate from the assets and
liabilities of the Business.
- Realisation: -
- Where revenue is regarded as having been
received only when the ownership of goods
are exchanged and where a sale is recorded
when it is either a cash or credit purchase.
- Where revenue is regarded as having been
received only when the ownership of goods
are exchanged and where a sale is recorded
when it is either a cash or credit purchase.
- Money Measurement: -
- Where only items with a
monetary value are recorded
in the financial records of a
business.
- Where only items with a
monetary value are recorded
in the financial records of a
business.
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