ACCOUNTING
Accounting Concepts Characteristics Relevance the eccentric of information that indicates the information makes a contravention in a decision. Reliability the quality of information that gives assurance that it is free of erroneous belief and bias. Accounting records must be based on the close to reliable data available (verifiable by independent source). comparing Ability to compare the chronicle information of different companies beca make use of they use the same accounting principles. Consistency Use of the same accounting principles and methods from year to year within a company. Assumptions Monetary building block Only items that can be expressed in funds are included in the accounting records. Economic Entity either scotch entity can be separately identified and accounted for. An system stands apart from other organizations as a separate economic unit. Economic events can be identified with a situation unit of accountability. Time Period The life of a line of products can be divided into artificial time periods so jobes can report information at regular intervals. way out Concern Entity will continue to operate long exuberant to recover cost of its assets (business will remain in mental process for the foreseeable future).
Principles Revenue Recognition Revenue should be know ( enter) in the period in which it is earned. Revenue is earned when the business has completed rendering services and/or ownership of products has transferred. gist to record as revenue is equal to the cash appraise of services and/or goods. Matching expenses are matched with related revenues in same accounting period (Let the expenses follow the revenue). Full disclosure Principle all circumstance and events that would make a difference to financial statement users will be disclosed (included in financial statements and notes). Cost Principle Assets/services acquired are recorded at actual, historical cost. Constraints Materiality whether an item is large...If you want to narrow a full essay, order it on our website: Ordercustompaper.com
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