- When every transaction has a corresponding debit + credit. Relates to double entry book keeping.
1 of 10
Realisation
Transactions are recorded once the transaction has legally taken place.
2 of 10
Prudence
It requires being cautious with financial figures. Its important that they always use realistic figures. Make sure that a lower figure for profit and assets should be recorded.
3 of 10
Consistency
When you are making sure that there isn't any changes to the way accounting information is dealt with.
4 of 10
Accruals
Income and costs should be matched to the same financial period.
5 of 10
Cost
When assets should be recorded at historical cost. It includes the actual amount of the transaction involved.
6 of 10
Going concern
Assumes that the business will carry on trading, rather than stopping.
7 of 10
Materiality
Defines whether it is worth recording financially when items have low value.
8 of 10
Money Measurement
You only deal with things that has a value and records a transaction expressed in money.
9 of 10
Business entity
Making sure that accounts are kept separate from the finance of its owners.
10 of 10
Other cards in this set
Card 2
Front
Transactions are recorded once the transaction has legally taken place.
Back
Realisation
Card 3
Front
It requires being cautious with financial figures. Its important that they always use realistic figures. Make sure that a lower figure for profit and assets should be recorded.
Back
Card 4
Front
When you are making sure that there isn't any changes to the way accounting information is dealt with.
Back
Card 5
Front
Income and costs should be matched to the same financial period.
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