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Study sets matching "accounting concepts"

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Study sets matching "accounting concepts"

8 terms
Accounting Concepts
Business Entity
Unit of Measurement
Realization of Revenue
Objective Evidence
Business financial information is kept separate from owner's…
Business transactions are stated in numbers that have common…
Revenue is recorded at the time goods or services are sold.
A source document is prepared for each transaction and is req…
Business Entity
Business financial information is kept separate from owner's…
Unit of Measurement
Business transactions are stated in numbers that have common…
10 terms
Accounting concepts
Accounting Period Cycle
Adequate Disclosure
Business Entity
Consistent Reporting
Changes in financial information are reported for a specific…
Financial statements contain all information necessary to und…
Financial information that is recorded and kept separately fr…
The same accounting procedures are followed in the same way i…
Accounting Period Cycle
Changes in financial information are reported for a specific…
Adequate Disclosure
Financial statements contain all information necessary to und…
6 terms
Accounting concepts
Monetary measurement
Entity concept
Historical cost concept
Period reporting
All transactions are measured using a common unit of measure…
The personal transactions of the owner are kept separate from…
Transactions are recorded in the accounting records at cost t…
The life of the entity is divided into nominated time periods…
Monetary measurement
All transactions are measured using a common unit of measure…
Entity concept
The personal transactions of the owner are kept separate from…
12 terms
Accounting Concepts
Business Entity
Unit of Measurement
Consistent Reporting
Objective Evidence
Financial information is recorded and reported separately fro…
Business transactions are stated in numbers that have common…
The same accounting procedures are followed in the same way i…
A source document is prepared for each transaction.
Business Entity
Financial information is recorded and reported separately fro…
Unit of Measurement
Business transactions are stated in numbers that have common…
12 terms
Accounting Concepts
Accounting Entity
Period Reporting
Monetary Measurement
Going Concern
The financial affairs of the owner are kept separate and dist…
The life of the business is divided up into time periods of e…
All transactions, assets, liabilities, incomes and expenses a…
Assumes the entity will continue the foreseeable future i.e.…
Accounting Entity
The financial affairs of the owner are kept separate and dist…
Period Reporting
The life of the business is divided up into time periods of e…
10 terms
Accounting Concepts
Business Entitiy
Unit of Measurement
Consistent Reporting
Objective Evidence
Financial information is recorded and reported separately fro…
Business transactions are stated in numbers that have common…
The same accounting procedures are followed in the same way i…
A source document is prepared for each transaction.
Business Entitiy
Financial information is recorded and reported separately fro…
Unit of Measurement
Business transactions are stated in numbers that have common…
11 terms
Accounting Concepts
Accounting Period Cycle
Adequate Disclosure
Business Entity
Consistent Reporting
Changes in financial information are reported for a specific…
Financial statements contain all information necessary to... und…
Financial information is recorded and reported separately... fro…
The same accounting procedures must be followed in the same w…
Accounting Period Cycle
Changes in financial information are reported for a specific…
Adequate Disclosure
Financial statements contain all information necessary to... und…
10 terms
Accounting Concepts
Business Entity
Unit of Measurement
Realization of Revenue
Objective Evidence
The accounting concept applied when a business's financial in…
The accounting concept applied when business transactions are…
The accounting concept applied when revenue is recorded at th…
The accounting concept applied when a source document is prep…
Business Entity
The accounting concept applied when a business's financial in…
Unit of Measurement
The accounting concept applied when business transactions are…
12 terms
Accounting Concepts
Concepts Purpose
Income Statement Purpose
Statement of Financial Position Purpose
Statement of Cash Flows Purpose
Different accountants in different businesses are using consi…
Provides information about financial performance to measure n…
To measure the Entity's assets, liabilities and equity. It me…
Provides information about where cash has been received and w…
Concepts Purpose
Different accountants in different businesses are using consi…
Income Statement Purpose
Provides information about financial performance to measure n…
10 terms
Accounting Concepts
Accounting Period Cycle
Adequate Disclosure
Business Entity
Consistent Reporting
Changes in financial information are reported for a specific…
Financial statements contain all information necessary to und…
Financial information is recorded and reported separately fro…
The same accounting procedures must be followed in the same w…
Accounting Period Cycle
Changes in financial information are reported for a specific…
Adequate Disclosure
Financial statements contain all information necessary to und…
17 terms
Accounting Concepts
Accounting Period Cycle
Business Entity
Comparability
Conservatism
The life of a business is divided into a series of accounting…
Each business must maintain a set of accounting records separ…
comparative financial statements; used to compare the results…
accounting guideline requiring that accountants choose the "s…
Accounting Period Cycle
The life of a business is divided into a series of accounting…
Business Entity
Each business must maintain a set of accounting records separ…
11 terms
Accounting Concepts
Accounting Period Cycle Concept
Adequate Disclosure Concept
Business Entity Concept
Consistent Reporting Concept
Changes in financial information are reported for a specific…
Financial statements contain all information necessary to und…
Financial information is recorded and reported separately fro…
The same accounting procedures must be followed in the same w…
Accounting Period Cycle Concept
Changes in financial information are reported for a specific…
Adequate Disclosure Concept
Financial statements contain all information necessary to und…
11 terms
Accounting Concepts
Accounting Period Cycle
Adequate Disclosure
Business Entity
Consistent Reporting
Changes in financial information are reported for a specific…
Financial statements contain all information necessary to und…
Financial information is recorded and reported separately fro…
The same accounting procedures are followed in the same way i…
Accounting Period Cycle
Changes in financial information are reported for a specific…
Adequate Disclosure
Financial statements contain all information necessary to und…
Accounting Concepts
Assets minus liabilities equals ______…
Which term is associated with "left" o…
Which term is associated with "right"…
When cash is received, the account Cas…
Owner's Equity
Debit
Credit
Debited
Assets minus liabilities equals ______…
Owner's Equity
Which term is associated with "left" o…
Debit
11 terms
Accounting Concepts
accounting period cycle
adequate disclosure
consistent reporting
going concern
changes in financial information are reported for a specific…
financial statements contain all information necessary to und…
the same accounting procedures must be followed in the same w…
financial statements are prepared with the expectation that a…
accounting period cycle
changes in financial information are reported for a specific…
adequate disclosure
financial statements contain all information necessary to und…
12 terms
Accounting Concepts
Accounting Period Cycle
Business entity
Consistent reporting
Full disclosure
Changes in financial information are reported for a specific…
Financial information is recorded and reported separately fro…
The same accounting procedures must be followed in the same w…
All relevant financial information must be adequately and com…
Accounting Period Cycle
Changes in financial information are reported for a specific…
Business entity
Financial information is recorded and reported separately fro…
10 terms
Accounting Concepts
Accounting Entitiy
Unit of Measurement
Consistent Reporting
Objective Evidence
Financial information is recorded and reported separately fro…
Business transactions are stated in numbers that have common…
The same accounting procedures are followed in the same way i…
A source document is prepared for each transaction.
Accounting Entitiy
Financial information is recorded and reported separately fro…
Unit of Measurement
Business transactions are stated in numbers that have common…
14 terms
Accounting Concepts
Assets
Liabilities
Equity
Income
These are resources controlled by the entity as a result of p…
These are present obligations of the business as a result of…
This is the residual interest in the assets of a business aft…
These are increases in economic benefits in the form of inflo…
Assets
These are resources controlled by the entity as a result of p…
Liabilities
These are present obligations of the business as a result of…
10 terms
Accounting Concepts
GAAP stands for...
GAAP are...
Business Entity (concept of GAAP)
Cost (concept of GAAP)
Generally Accepted Accounting Principles
A standard of preparing financial data so that stakeholders c…
Accounts can only hold information about the one company; not…
Only transactions that have been performed will be recorded;…
GAAP stands for...
Generally Accepted Accounting Principles
GAAP are...
A standard of preparing financial data so that stakeholders c…
20 terms
Accounting concepts
Assets
Bank
Banking
Bank account
A valuable resource owned by the business
A place where the business can keep it's money safe until it…
Financial service from banks whereby they receive a businesse…
This is sometimes called a current bank account. It is used d…
Assets
A valuable resource owned by the business
Bank
A place where the business can keep it's money safe until it…
20 terms
1.1 Accounting Concepts
Going Concern
Entity Concept
Monetary Measurement
Historical Cost
The operations of the entity will continue into the foreseeab…
The financial transactions of the owner are kept separate and…
All transactions are recorded in a common dollar unit - NZD
Transactions are recorded at their original cost to the busin…
Going Concern
The operations of the entity will continue into the foreseeab…
Entity Concept
The financial transactions of the owner are kept separate and…
18 terms
Accounting Concepts
Account Balance
Accounting cycle
Accounts
Business transactions
The difference between the total debit footing and the total…
is a series of steps that measure and communicate useful info…
are the basic storage units for accounting data and are used…
are economic events that should be recorded in the accounting…
Account Balance
The difference between the total debit footing and the total…
Accounting cycle
is a series of steps that measure and communicate useful info…
11 terms
Accounting Concepts
Accounting Period Cycle
Adequate Disclosure
Business Entity
Consistent Reporting
Changes in financial information are reported for a specific…
Financial statements contain all information necessary to... und…
Financial information is recorded and reported separately... fro…
The same accounting procedures must be followed in the same w…
Accounting Period Cycle
Changes in financial information are reported for a specific…
Adequate Disclosure
Financial statements contain all information necessary to... und…
12 terms
Accounting Concepts
Accounting Period Cycle
Business Entity
Consistent Reporting
Full Disclosure
Changes in financial information are reported for a specific…
Financial information is recorded and reported separately fro…
The same accounting principles must be followed in the same w…
Financial statements contain all information necessary to und…
Accounting Period Cycle
Changes in financial information are reported for a specific…
Business Entity
Financial information is recorded and reported separately fro…
9 terms
Accounting Concepts
Adequate Disclosure
Matching Expenses with Revenue
Accounting Period Cycle
Going Concern
financial statements contain all information necessary to und…
revenue earned and the expenses incurred to earn that revenue…
changes in financial information are reported for a specific…
maintaining financial records for a business with the idea th…
Adequate Disclosure
financial statements contain all information necessary to und…
Matching Expenses with Revenue
revenue earned and the expenses incurred to earn that revenue…
10 terms
Accounting Concepts
Business Entity
Going Concern
Unit of Measure
Realization of Revenue
Financial information is recorded and reported separately fro…
Financial statements are prepared with the expectation that a…
Business transactions are stated in numbers that have common…
Revenue is recorded at the time goods or services is sold.
Business Entity
Financial information is recorded and reported separately fro…
Going Concern
Financial statements are prepared with the expectation that a…
12 terms
Accounting Concepts
Business Entitiy
Unit of Measurement
Consistent Reporting
Objective Evidence
Financial information is recorded and reported separately fro…
Business transactions are stated in numbers that have common…
The same accounting procedures are followed in the same way i…
A source document is prepared for each transaction.
Business Entitiy
Financial information is recorded and reported separately fro…
Unit of Measurement
Business transactions are stated in numbers that have common…
9 terms
Accounting Concepts
Business Entitiy
Unit of Measurement
Consistent Reporting
Objective Evidence
Financial information is recorded and reported separately fro…
Business transactions are stated in numbers that have common…
The same accounting procedures are followed in the same way i…
A source document is prepared for each transaction.
Business Entitiy
Financial information is recorded and reported separately fro…
Unit of Measurement
Business transactions are stated in numbers that have common…
10 terms
Accounting Concepts
Entity
Money Measurement
Going Concern
Consistency Method
The firm, company...
Accounting deals with things that can be represented in monet…
It is assumed that the entity will continue to run operations.
The same accounting method will be used from period to period.
Entity
The firm, company...
Money Measurement
Accounting deals with things that can be represented in monet…
23 terms
accounting concepts
Primary external users are
return OF investment is
return ON investment is
General Purpose Assumption
investors and creditors
interest on top of the loan
your original $
because there will be many potential users of financial info,…
Primary external users are
investors and creditors
return OF investment is
interest on top of the loan
15 terms
Accounting Concepts
Assets
Liabilities
Owner's Equity
Income
Future economic benefits or service potential controlled by t…
Future sacrifices of assets that the entity is presently obli…
Owner's residual interest in the assets after the deduction o…
Increases in assets or reductions in liabilities, other than…
Assets
Future economic benefits or service potential controlled by t…
Liabilities
Future sacrifices of assets that the entity is presently obli…
12 terms
Accounting Concepts
Accounting Entity
Monetary Measurement
Reporting Period/Period Reporting
Accrual Basis
The financial affairs of the business are kept separate and d…
Transactions are recorded in New Zealand dollars, the New Zea…
The lifetime of the business is divided into periods of equal…
The effects of transactions are recognised when they occur an…
Accounting Entity
The financial affairs of the business are kept separate and d…
Monetary Measurement
Transactions are recorded in New Zealand dollars, the New Zea…
10 terms
Accounting Concepts
matching expenses with revenue
business entity
unit of measurement
accounting period cycle
revenue from business activities and expenses associated with…
financial information is recorded and reported separately fro…
business transactions are stated in numbers that have common…
changes in financial information are reported for a specific…
matching expenses with revenue
revenue from business activities and expenses associated with…
business entity
financial information is recorded and reported separately fro…
9 terms
Accounting concepts
Business entity
Objectivity
Going concern
Materiality
Ensures that business and personal finances are kept separate.
Ensures that the financial statements are prepared without bi…
Accounts are prepared with the intention that the business wi…
Ensures concepts are not taken too literally. So that only re…
Business entity
Ensures that business and personal finances are kept separate.
Objectivity
Ensures that the financial statements are prepared without bi…
10 terms
Accounting Concepts
Matching Expenses with Revenue
Business Entity
Unit of Measurement
Accounting Period Cycle
revenue from business activities and expenses associated with…
financial information is recorded and reported separately fro…
business transactions are stated in numbers that have common…
changes in financial information are reported for a specific…
Matching Expenses with Revenue
revenue from business activities and expenses associated with…
Business Entity
financial information is recorded and reported separately fro…
10 terms
Accounting concepts
Define Historical Cost
State the Function of Accounting
Explain why a bank's leading manager b…
State an item of financial information…
Assets are recorded at the amount of cash paid or considerati…
To provide financial/ accounting information to users for dec…
To see if the business has ability to meet the interest payme…
Value/ cost of assets- to see what assets you are paying for…
Define Historical Cost
Assets are recorded at the amount of cash paid or considerati…
State the Function of Accounting
To provide financial/ accounting information to users for dec…
Accounting Concepts
Accounting Period Cycle
Adequate Disclosure
Business Entity
Consistant Reporting
Changes in the financial information are reported for a speci…
Financial statements contain all the information necessary to…
Financial information is recorded and reported separately fro…
The same accounting procedures must be followed in the same w…
Accounting Period Cycle
Changes in the financial information are reported for a speci…
Adequate Disclosure
Financial statements contain all the information necessary to…
10 terms
Accounting Concepts
Accounting Period Cycle
Adequate Disclosure
Business Entity
Consistent Reporting
Changes in financial information are reported for a specific…
Financial statements contain all information necessary to und…
Financial information is recorded and reported separately fro…
The same accounting procedures are followed in the same way i…
Accounting Period Cycle
Changes in financial information are reported for a specific…
Adequate Disclosure
Financial statements contain all information necessary to und…
11 terms
Accounting Concepts
Historical Cost
Materiality
Business Entity
Money Measurement
Transactions are recorded at what they originally cost or NBV…
We only consider things of a material nature, eg. not paper c…
We record things from the business' point of view, not the ow…
Accounting only deals with things that can be measured in £s…
Historical Cost
Transactions are recorded at what they originally cost or NBV…
Materiality
We only consider things of a material nature, eg. not paper c…
10 terms
Accounting Concepts
Business Entity
unit of measurement
going concern
realization of revenue
a business's financial information should be reported and rec…
all transactions should be reported in common values
preparing financial statements with the expectation that your…
record revenue at the time of the sale, regardless of when yo…
Business Entity
a business's financial information should be reported and rec…
unit of measurement
all transactions should be reported in common values
11 terms
Accounting Concepts
Accounting Period Cycle
Adequate Disclosure
Business Entity
Consistent Reporting
Changes in financial information are reported for a specific…
Financial Statements contain all information necessary to und…
Financial information is recorded and reported separately fro…
The same accounting procedures must be followed in the same w…
Accounting Period Cycle
Changes in financial information are reported for a specific…
Adequate Disclosure
Financial Statements contain all information necessary to und…
19 terms
Accounting concepts
Purpose of accounting
Purpose of: Income statement
Purpose of: Statement of financial pos…
Purpose of: Statement of cash flows
The purpose of accounting is to comunicate both finacial and…
To measure the profit/loss for the period and the components…
To measure assets, liabilities and equity and the relationshi…
To show where cash has come from and how it has been spent ov…
Purpose of accounting
The purpose of accounting is to comunicate both finacial and…
Purpose of: Income statement
To measure the profit/loss for the period and the components…
7 terms
Accounting - Concepts
Accounting entity/reporting entity
Period reporting
Monetary measurement
Accrual basis
The personal financial affairs of the owner must be kept sepe…
The life of a business is split into equal lengths of time fo…
All transactions need to be recorded in terms of a common uni…
Transactions are recorded when they occur regardless of wheth…
Accounting entity/reporting entity
The personal financial affairs of the owner must be kept sepe…
Period reporting
The life of a business is split into equal lengths of time fo…
20 terms
Accounting Concepts
Materiality
Predictive Value
Relevance
Confirmatory Value
Info is material if omitting it or misstating it could influe…
The info is useful to help the decision maker in making a pre…
Info is relevant if it has the potential to make a difference…
The info can be used to provide feedback about the accuracy o…
Materiality
Info is material if omitting it or misstating it could influe…
Predictive Value
The info is useful to help the decision maker in making a pre…
8 terms
Accounting concepts
Accounting period cycle
Adequate disclosure
Business entity
Consistent reporting
Changes in financial information are reported for a specific…
Financial statements contain all information necessary to und…
Financial info is recorded and reported separately from the o…
The same accounting procedures must be followed in the same w…
Accounting period cycle
Changes in financial information are reported for a specific…
Adequate disclosure
Financial statements contain all information necessary to und…
29 terms
Accounting Concepts
Assets
Liabilities
Income
Expense
Example: Equipment... Past Purchase, Present Control and Future…
Example: Accounts Payable... Past use of Credit/Agreement to Loa…
Example: Fees Received... Increased Economic Benefit, Increased…
Example: Electricity... Decreased Economic Benefit, Decreased Eq…
Assets
Example: Equipment... Past Purchase, Present Control and Future…
Liabilities
Example: Accounts Payable... Past use of Credit/Agreement to Loa…
13 terms
Accounting Concepts
Going concern
Accruals Matching
Consistency
Prudence
when preparing accounts it must be assumed that the business…
all items of income and expenditure that belong to a given ac…
accounting items must be treated in exactly the same way from…
caution should be exercised. Losses can be anticipated but ga…
Going concern
when preparing accounts it must be assumed that the business…
Accruals Matching
all items of income and expenditure that belong to a given ac…
13 terms
Accounting Concepts
Accrual Concept
Consistency Concept
Revenue Recognition Concept
Historical Cost Concept
Both financial transactions, either on cash basis or credit b…
The business should be consistent in terms of utilising accou…
Transaction should be recorded in the books of accounts on th…
The value of an asset should be recorded at its original valu…
Accrual Concept
Both financial transactions, either on cash basis or credit b…
Consistency Concept
The business should be consistent in terms of utilising accou…
10 terms
Accounting concepts
Business Entity
Dual Aspect
Prudence
Matching / Accruals concept
"Only transactions affecting the business must be recorded in…
"Every transaction affects 2 accounts"... Every transaction req…
"Assets & profits are always understated rather than overstat…
"Expenses & revenues must be matched to the time period in wh…
Business Entity
"Only transactions affecting the business must be recorded in…
Dual Aspect
"Every transaction affects 2 accounts"... Every transaction req…
6 terms
Accounting Concepts
Accounting Entity
Historical Cost
Period Reporting
Monetary Measurement
The financial affairs of the owner are kept separately from t…
All transactions are recorded at the original price that the…
The life of the business is broken up into equal periods of t…
All transactions will be recorded at the common currency of t…
Accounting Entity
The financial affairs of the owner are kept separately from t…
Historical Cost
All transactions are recorded at the original price that the…
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