Accounting Concepts
- Created by: Hannah
- Created on: 01-05-13 21:53
M | S | M | C | O | N | S | I | S | T | E | N | C | Y | G | H | H | O | D | B | F |
X | G | A | K | G | H | Y | D | J | S | B | D | R | F | T | I | W | S | N | G | S |
W | B | U | S | I | N | E | S | S | E | N | T | I | T | Y | S | B | H | W | X | Y |
I | W | N | G | E | J | X | Y | L | P | X | L | M | T | H | T | E | U | V | W | N |
Y | J | A | X | U | D | O | L | A | D | T | O | N | N | G | O | C | W | S | S | I |
B | U | G | U | O | B | J | E | C | T | I | V | I | T | Y | R | N | D | Y | K | D |
G | O | N | D | R | C | D | O | O | C | S | W | I | S | F | I | E | F | M | D | N |
O | W | R | G | O | I | N | G | C | O | N | C | E | R | N | C | D | T | A | P | M |
Y | G | M | S | Q | H | Q | C | K | S | Q | B | B | K | V | C | U | J | T | J | F |
N | H | M | H | K | V | D | L | E | B | F | P | H | F | F | O | R | Q | E | L | M |
M | Y | U | U | M | D | N | S | M | J | P | C | S | U | E | S | P | A | R | E | Y |
R | U | R | T | Q | B | X | B | H | S | H | F | M | P | M | T | U | V | I | D | P |
U | J | Y | X | Q | V | C | X | B | B | S | U | F | U | S | K | A | L | A | X | R |
I | R | E | A | L | I | S | A | T | I | O | N | C | K | C | R | U | C | L | E | C |
A | C | C | R | U | A | L | S | M | A | T | C | H | I | N | G | I | Y | I | B | H |
Y | Q | W | V | K | V | E | U | X | R | H | F | R | V | I | C | N | B | T | D | F |
E | P | B | F | B | J | D | Q | V | G | M | Q | O | L | G | P | I | Y | Y | O | N |
M | C | U | E | M | P | Q | Y | U | D | C | O | K | I | J | O | N | L | U | A | K |
S | C | C | J | W | N | C | M | K | R | Q | I | N | X | V | U | T | Y | I | O | V |
N | M | C | M | O | V | B | F | W | W | H | X | B | S | K | Y | Y | L | N | V | G |
G | P | F | X | F | L | J | J | H | C | S | V | Y | X | F | S | E | W | C | N | T |
Clues
- Assuming a business will continue to operate for the foreseeable future unless otherwise. Going concern allows assets to stretch their lives into the financial statements ie charging depreciation. (5, 7)
- Based on using the orginal cost of the item instead of it's current value. (8, 4)
- Consistency requires that the chosen method should always be applied to all items of the same type in the same accounting period and future periods. Consistency helps compare which is a desirable characterisitic for accounting information. (11)
- Financial accounts should be produced as factually accurate as possible; should be based on facts rather than opinions and bias. (11)
- Materiality is important as it relates to the siginifcance of the transaction, dicussing whether is it material or immaterial. (11)
- The business accounts should be treated separately from the owner's accounts. (8, 6)
- The expense should match the revenue which relates. Revenue and expenses should be recognised in the same accounting period. (8, 8)
- Transactions should only be recognised in the P&L a/c when the obligation to pay has been accepted or the goods/services have been passed to customer. (11)
- When making an estimate an accountant will tend to: underestimate revenue and overstate expenses to not give an favourable view. (8)
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