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Principi di account

  • Note di Apprendimento
  • Revisione degli argomenti
    Tashika B.
    US
    Tashika B.

    There are so many breeches that I didn't know about within an organization.

    BabaJide Martins F.
    TR
    BabaJide Martins F.

    Guidelines to accounting....

    Hermina S.
    LC
    Hermina S.

    What is the purpose of breaching on agreements or principles when there will be consequences to adhere to rectifying the problem that could be avoided in the first place, by following the principles and concepts of accounting?

    Morne V.
    ZA
    Morne V.

    These principles support the general accounting concepts.

    Morne V.
    ZA
    Morne V.

    These principles support the general accounting concepts

    Sunday O.
    NG
    Sunday O.

    Accounting principles the step been use in a account

    Celestino T.
    AO
    Celestino T.

    Interesting topic.

    Odongo M.
    UG
    Odongo M.

    Accounting -> Accounting principles Accounting principles The impact of accounting principles (otherwise known as conventions, doctrines or assumptions) on the preparation and presentation of financial information is an important aspect of all Accounting units. These principles support the general accounting concepts. These principles are described in the following pages. It is also important to recognise how they may be breached. Accounting period The life of the business is broken up into arbitrary periods for the purpose of measuring profit. Breach The owner decides to wait until the project is completed before preparing the financial reports. Conservatism May also be known as prudence. Losses should be recognised as soon as the business is aware of their likely event whilst profits should not be recognised until they actually occur. Breach The net realisable value of stock has fallen below cost yet the owner refuses to adjust cost of goods sold calculations. Consistency Accounting reports from one period to the next should be prepared on the same basis. Breach The owner uses one method of depreciation for a particular asset in one period and an alternative method in the second period. Dependability Data used in accounting should be subject to stringent internal control Breach Price calculations are based on outdated information. Disclosure The owner is obligated to disclose any transactions of a significant financial nature in their reports. Breach The owner determines not to include the recent sale of property in the financial reports as this may deter potential buyers of the business. Diversity Allows for the fact that no two firms are the same and therefore may use different accounting methods. Breach The owner decides that because the business down the road uses the straight line method of depreciation his business should do the same. Entity Recognises that the business, from an accounting viewpoint, is separate from the owner. Breach The owner includes in the business balance sheet personal assets such as his golf clubs. Going concern Assumes that the life of the business is ongoing, indefinite and continuous. Also known as the continuity principle. Breach The owner does not wish to prepare a balance sheet but rather reports non-current assets as costs in the period they were acquired. Historical cost All items are recorded at the original cost, that is, the cost at which they were acquired. Breach Property owned by the business is shown at the higher market value rather than for the amount at which it was originally acquired. Matching Sets out the point of time at which revenue may be recognised Breach A contract is signed for advertising in your magazine. Although you will not include any advertising in this period's work you still include the revenue paid in advance. Materiality Is concerned with which data should be disclosed in financial reports. All transactions regardless of size should be recorded. Breach The owner does not bother to record minor withdrawals of stock from the business. Monetary Only events whose impact can be measured in money terms can be treated as a financial transaction and thus entered in the books of the business.All transactions should be recorded in money terms. Breach Stock is shown in financial reports in quantity amounts. Verifiability All transactions recorded in the books of the business are supported by documentary evidence Breach Payments are made and recorded without supporting evidence such as invoices or cheque butts

    Nana Amankwah K.
    GH
    Nana Amankwah K.

    The principles support the general accounting concepts.

    Manish K.
    NP
    Manish K.

    it gives information about popular accounting principles and chance of breaching accounting rules for personal benefits of owners. Over all , information is fruitful for accounting personnel.

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