Accounting concepts

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1. What is Consistency?

  • Accounts must be realistic and factual.
  • Assumes business is operating as normal.
  • Accounts are produced in exactly the same way.
  • Occurs when ownership changes hands not when the actual payment has occurred.
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Other questions in this quiz

2. What is financial management?

  • Assets, Liabilities and money outflow in a business
  • Assets, profits and levels of cash in a business
  • Money
  • Internal financial accounts. E.g targets

3. What is Materiality?

  • Not overstating financial situation
  • Time of information put into accounts. Date of transaction, not payment.
  • Don't account for all little assets that make no difference to accounts.
  • Accounts must be realistic and factual

4. What is Realisation?

  • Does Not include all little assets that make no difference to the business figures.
  • When ownership changes hands not payment, Point of sale. E.g titles of land
  • Assumes a business is operating as normal.
  • Accounts must be realistic and factual

5. What is GAAP?

  • Genuinely Accepted Accountancy Practise
  • Generally Accepted Accountancy Practice
  • Generally Anxious Accountancy Performance
  • Generally Accepted Accounts Performance

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