Accounting Concepts- Unit 2 0.0 / 5 ? AccountingAccounting ConceptsASAQA Created by: KatyX97Created 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
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