3662420
| Question | Answer |
| ACCOUNTING CONCEPTS | MATERIALITY GOING CONCERN ACCURALS |
| MATERIALITY | Some items are of such low value that it is not worth recording them in the accounting records ie they are not material examples include: 1) small expense items grouped together as sundry expenses 2) small end of year items of office stationery not valued for the purpose of financial statements 3) low cost non current assets being charged as an expense in the statement of profit and loss |
| GOING CONCERN | This presumes that the entity to which the financial statements relate will continue in the foreseeable future. |
| ACCRUALS | This means the income and expenses are matched so that they concern the same goods/service and the same time period. The statement of profit/loss shows the amount of income that should have been received and the amount of expense that should have been incurred |
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