factual information is preferred because it is likely to be beyond dispute
Objectivity
1 of 9
the assumption that a business will continue to trade for the foreseable future
Going Concern
2 of 9
Expences and revenue are matched for a time period when calculating profits
Accruals
3 of 9
Accounting methods are applied in the same way in each accounting period
Consistency
4 of 9
Where there is doubt asset and profit values are under rather than over stated, never assume profit until realised, but losses should be dealt with when anticipated
Prudence
5 of 9
If the amount involved is relatively insignificant, then the usual accounting treatment of an item can be set aside
Materiality
6 of 9
Revenue should not be recorded in the accounts until it is realised
Realisation
7 of 9
An accounting system will contain records of that organisation only
Business Entity
8 of 9
Assets should be valued at cost
Cost
9 of 9
Other cards in this set
Card 2
Front
the assumption that a business will continue to trade for the foreseable future
Back
Going Concern
Card 3
Front
Expences and revenue are matched for a time period when calculating profits
Back
Card 4
Front
Accounting methods are applied in the same way in each accounting period
Back
Card 5
Front
Where there is doubt asset and profit values are under rather than over stated, never assume profit until realised, but losses should be dealt with when anticipated
Comments
No comments have yet been made