Accounting concepts 0.0 / 5 ? AccountingAccounting ConceptsA2/A-levelAQA Created by: Squirrel2735Created on: 24-01-23 21:04 Business entity “Only transactions affecting the business must be recorded in the accounting system 1 of 9 Prudence concept Assets and profits are always understated rather than overstated 2 of 9 Matching /accruals concept Expenses and revenues must be matched to the time period in which E or R occurs 3 of 9 Realisation Profits cannot be assumed until a sale has taken place 4 of 9 Materiality Only assets above a certain value can be recorded as non current assets 5 of 9 Going concern Business continuing for foreseeable future 6 of 9 Consistency Same policy for recording transactions every year 7 of 9 Money measurement Only events involving money can be recorded in the accounting system 8 of 9 Cost Assets are recorded at cost price 9 of 9
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