Accounting Concepts

Created by: summerjohnston2061
Created on: 22-06-13 02:50

is resource controlled by an entity as a result of past events & from which future economic benefits are expected to flow to the entity.

Asset

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is a present obligation of the entity arising from past events, the settlement of which is expected to result in & outflow from the entity of resources embodying economic benefits.

Liability

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is a residual interest in the assets of the entity after the deducting all its liabilities.

Equity

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These assets are expected to be retained in the business beyond the end of the next reporting period. They are further divided into: Investment Assets, Property, Plant & Equipment & Intangible Assets.

Non-Current Assets

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These liabilities will be paid over a period of time beyond the next reporting period or twelve –month business cycle. They include mortgages, hire purchases payments and long-term loans.

Non-Current Liabilities

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Assets that are held for trading or that we expect will turn into cash, or be used up within the next reporting period. These assets include cash at bank, accounts receivable, stock of goods for resale (inventory), supplies such as cleaning materials

Current Assets

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All transactions are measured in dollars. The dollar is the common unit of measure.

Monetary Measurement

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Assets are recorded at the amount of cash paid (or payable) at the time of their acquisition.

Historical Cost

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The entity will continue in the existence for the foreseeable future.

Going Concern

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Assets such as term deposits or shares in companies, which are expected to be kept in the business for more than one reporting period. These are normally more easily converted into cash than property, plant & equipment.

Investment Assets

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Other cards in this set

Card 2

Front

is a present obligation of the entity arising from past events, the settlement of which is expected to result in & outflow from the entity of resources embodying economic benefits.

Back

Liability

Card 3

Front

is a residual interest in the assets of the entity after the deducting all its liabilities.

Back

Card 4

Front

Back

Card 5

Front

These liabilities will be paid over a period of time beyond the next reporting period or twelve –month business cycle. They include mortgages, hire purchases payments and long-term loans.

Back

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Accounting Concepts