Accounting concepts 0.0 / 5 ? Business StudiesOperations managementA2/A-levelOCR Created by: Fraser2126Created on: 08-11-18 12:09 What are the 7 Accounting concepts? Matching, Realisation, Materiality, Objectivity, Prudence, Consistency and Going concern. 1 of 13 What are the two types of accounting? Financial and Management 2 of 13 What is financial management? Assets, profits and levels of cash in a business 3 of 13 What is Management accounting? Internal financial accounts 4 of 13 What is Materiality? Don't account for all little assets that make no difference to accounts. 5 of 13 What is Realisation? When ownership changes hands not payment, Point of sale. E.g titles of land 6 of 13 What is Matching/Accurals? Time of information put into accounts, Date of transaction rather than actual payment. 7 of 13 What is Objectivity? Accounts must be realistic and factual. 8 of 13 What is Prudence? Not Overstating the financial situation. 9 of 13 What is Consistency? Accounts are produced in exactly the same way. 10 of 13 What is Going Concern? Assumes a business is operating as normal. 11 of 13 What is GAAP? Generally Accepted Accountancy Practice 12 of 13 What is GAAP? Framework of accounting rules or principles. 13 of 13
3.7.6 Analysing the external environment to assess opportunities and threats: social and technological 0.0 / 5
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