Accounting concepts

What are the 7 Accounting concepts?
Matching, Realisation, Materiality, Objectivity, Prudence, Consistency and Going concern.
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What are the two types of accounting?
Financial and Management
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What is financial management?
Assets, profits and levels of cash in a business
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What is Management accounting?
Internal financial accounts
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What is Materiality?
Don't account for all little assets that make no difference to accounts.
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What is Realisation?
When ownership changes hands not payment, Point of sale. E.g titles of land
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What is Matching/Accurals?
Time of information put into accounts, Date of transaction rather than actual payment.
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What is Objectivity?
Accounts must be realistic and factual.
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What is Prudence?
Not Overstating the financial situation.
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What is Consistency?
Accounts are produced in exactly the same way.
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What is Going Concern?
Assumes a business is operating as normal.
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What is GAAP?
Generally Accepted Accountancy Practice
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What is GAAP?
Framework of accounting rules or principles.
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Other cards in this set

Card 2

Front

What are the two types of accounting?

Back

Financial and Management

Card 3

Front

What is financial management?

Back

Preview of the front of card 3

Card 4

Front

What is Management accounting?

Back

Preview of the front of card 4

Card 5

Front

What is Materiality?

Back

Preview of the front of card 5
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