Accounting Concepts

Going Concern: -
1. The assumption that the Business is going to continue in the foreseeable future.
Accruals (Matching): -
1. The matching of costs and revenues to the final accounts in which goods and services were used.
Consistency: -
1. The continued adoption of policies for dealing with financial records.
Prudence: -
1. Where losses are provided for immediately in the financial records but profits are not recognised until they have been realised.
Materiality: -
1. Where items with a low monetary are not recorded individually.
Duality: -
1. The principle that every business transaction has two aspects and is recorded as a DEBIT and a CREDIT.
Business Entity: -
1. The assets and liabilities of the owner are kept separate from the assets and liabilities of the Business.
Realisation: -
1. Where revenue is regarded as having been received only when the ownership of goods are exchanged and where a sale is recorded when it is either a cash or credit purchase.
Money Measurement: -
1. Where only items with a monetary value are recorded in the financial records of a business.

Resource summary

	Created by hannahsophie.austin over 11 years ago