Accounting Concepts- Unit 2

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  • Created by: KatyX97
  • Created on: 08-05-15 17:11
Business Entity
Only transactions relating to the business are entered in accounts
1 of 9
Materiality
All info provided significant to users of accounts. Trivial items are not included
2 of 9
Going Concern
Assumes the business will continue for at least 12 months
3 of 9
Accruals / matching
Profit calculated over a period of time, revenue and expenses must match this
4 of 9
Prudence
Where there is doubt asset value and profit should be understated rather than overstated
5 of 9
Cost
Assets and liabilities are recorded at cost price
6 of 9
Objectivity
Accounting information should be factual (where possible)
7 of 9
Realisation
Revenue should be realised when it is certain ie. cash received or promise to pay
8 of 9
Consistency
Requires same procedures to be practised year on year
9 of 9

Other cards in this set

Card 2

Front

All info provided significant to users of accounts. Trivial items are not included

Back

Materiality

Card 3

Front

Assumes the business will continue for at least 12 months

Back

Preview of the back of card 3

Card 4

Front

Profit calculated over a period of time, revenue and expenses must match this

Back

Preview of the back of card 4

Card 5

Front

Where there is doubt asset value and profit should be understated rather than overstated

Back

Preview of the back of card 5
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