Accounting concepts

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  • Created by: i.capocci
  • Created on: 20-06-16 15:18
Going concern
Drawing accounts must assumes the business will continue to trade.
1 of 9
Materiality
Only need to record assets/costs of significant value on finals account
2 of 9
Business enitity
Accounts of business owner and business should be kept seperate
3 of 9
Dualality
Every transaction has a+ive and -ive effect of equal value
4 of 9
money measurement
You can only record things which have a financial value
5 of 9
Realisation
Must not overestimate value of business (1) only record revenue if goods paid for or exchanged
6 of 9
Consistency
Should have a uniform approach to putting accounts together
7 of 9
Prudence
Must not overestimate value of the business
8 of 9
Accurals
When used something which has not been paid for
9 of 9

Other cards in this set

Card 2

Front

Only need to record assets/costs of significant value on finals account

Back

Materiality

Card 3

Front

Accounts of business owner and business should be kept seperate

Back

Preview of the back of card 3

Card 4

Front

Every transaction has a+ive and -ive effect of equal value

Back

Preview of the back of card 4

Card 5

Front

You can only record things which have a financial value

Back

Preview of the back of card 5
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