Accounting Concepts

Accounting Period judgment Also known as Time Period where business operation can be divided into specific intent of time such as a month, a quarter or a yr(accounting termination). finale accounts be lively at the end of the accounting period ie one year. Internal accounts can be inclined(p) monthly, quarterly or half yearly. Accrual model Requires altogether grosss and expenses to be taken into account for the period in which they be earned and incurred when determining the profit/(loss) of the business. The net profit/(loss) is the leave among the revenue EARNED and the expenses INCURRED and not the difference between the revenue RECEIVED and expenses PAID. Business Entity Concept Also known as Accounting Entity convention which states that the business is an entity or body stand out from its owner. Therefore business records should be separated and distinct from personal records of business owner. Consistency Concept According to this convention , accounting practices should repose unvaried from one period to another. For example, if depreciation is charged on inflexible assets according to a particular method, it should be through year after year. This is necessary for purpose of comparison. Dual tone Concept take over admission system. For every debit, at that place is a credit entry of an equal amount.

Full divine revelation Concept Financial statements should provide comfortable or relevant information to influence users decision making. issue Concern Concept The business will follow accounting concepts and methods on the speculation that business will cont inue its operation to the foreseeable succe! eding(a) or for an indefinite period of time. Historical represent Concept Business should report its activities or economic events at their visible cost. For example, fixed assets are recorded at their cost in accounts except for land which can be revalued due to application. physicalness Concept The accountant should attach importance to material detail and...If you deficiency to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay