Study sets matching "accounting concepts"

Study sets
Classes
Users

Study sets matching "accounting concepts"

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…
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…
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…
10 terms
Accounting Concepts
Objective Evidence
Unit of Measurement
Accounting Period Cycle
Adequate Disclosure
A source document is prepared for each transaction
Business transactions are stated in numbers that have common…
Changes in financial information are reported for a specific…
Financial statements contain all information necessary to und…
Objective Evidence
A source document is prepared for each transaction
Unit of Measurement
Business transactions are stated in numbers that have common…
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…
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…
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…
Accounting Concepts
Adequate Disclosure
Accounting Period Cycle
Business Entity
Consistent Reporting
Financial statements contain all information necessary to und…
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…
Adequate Disclosure
Financial statements contain all information necessary to und…
Accounting Period Cycle
Changes in financial information are reported for a specific…
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…
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
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…
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…
Accounting Concepts
Objective Evidence
Accounting Period Cycle
Adequate Disclosure
Consistent Reporting
A source document is prepared for each transaction
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…
Objective Evidence
A source document is prepared for each transaction
Accounting Period Cycle
Changes in financial information are reported for a specific…
Accounting Concepts
Unit of measurement
Business entity
realization of revenue
objective evidence
when financial reports of a business can be clearly stated an…
transactions associated with a business must be separately re…
when revenue is recorded at the time goods or services are sold
when a source document is prepared for each transaction
Unit of measurement
when financial reports of a business can be clearly stated an…
Business entity
transactions associated with a business must be separately re…
Accounting Concepts
Business Entity
Unit of Measurment
Realization of Revenue
Historical Cost
A business's financial information is recorded and reported s…
Business transactions are state in numbers that have common v…
Revenue is recorded at the time goods or services are sold
When the actual amount paid for merchandise or other items bo…
Business Entity
A business's financial information is recorded and reported s…
Unit of Measurment
Business transactions are state in numbers that have common v…
Accounting Concepts
Accounting Entity
Monetary Measurement
Historical Cost
Going Concern
When we prepare the accounting records of a business we only…
If a transaction cannot be expressed in money values, it will…
This means that assets are recorded at their original price w…
Expected selling price is not relevant when valuing property,…
Accounting Entity
When we prepare the accounting records of a business we only…
Monetary Measurement
If a transaction cannot be expressed in money values, it will…
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
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…
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…
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
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…
7 terms
Accounting concepts
Accounting period cycle
Business entity
Consistent reporting
Matching expenses with revenue
Changes in financial information are reported for a specific…
Financial information is recorded and reported separately fro…
The same accounting procedures are following in the same way…
Revenue from business activities and expenses associated with…
Accounting period cycle
Changes in financial information are reported for a specific…
Business entity
Financial information is recorded and reported separately fro…
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…
7 terms
Accounting Concept
Assets
Liabilities
Equity
Income
Assets are resources that the entity purchased in the past, a…
Liabilities are future sacrifices of assets that the entity i…
The residual value of assets minus liabilities.
Increase in assets or decrease in liabilities which cause an…
Assets
Assets are resources that the entity purchased in the past, a…
Liabilities
Liabilities are future sacrifices of assets that the entity i…
11 terms
Accounting concepts
Asset
Liability
Business Entity Concept
Monetary Convention
reporting an itemwhat a business owns
what a business owes
the business is an entity separate from its owner
records all business transactions in a common monetary units;…
Asset
reporting an itemwhat a business owns
Liability
what a business owes
11 terms
Accounting Concepts
Accounting concepts
Accruals concept
Consistency concept
Going concern
Rules of accounting that should be followed in preparation of…
Revenue and expenses are recorded when they occur not when th…
Once an accounting method has been chosen, that method should…
The business entity for which accounts are being prepared is…
Accounting concepts
Rules of accounting that should be followed in preparation of…
Accruals concept
Revenue and expenses are recorded when they occur not when th…
Accounting Concepts
Accounting Entity
Monetary Measurement Concept
Going Concern Concept
Period Reporting
All financial affairs of the owner of the business must be ke…
All items and transactions are stated in dollar terms in the…
The assumption that an entity will continue its operations in…
The life of the business is divided into periods of equal len…
Accounting Entity
All financial affairs of the owner of the business must be ke…
Monetary Measurement Concept
All items and transactions are stated in dollar terms in the…
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 separtely from…
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
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…
Accounting Concepts
Monetary Measurement
Historical Cost
Accrual Basis
Period Reporting
The value of all transactions is measured and reported in NZ…
•Transactions are recorded at the dollar value when the origi…
•Transactions are recognised when they happen... • Reported in t…
•Accounting information is collected over a certain period of…
Monetary Measurement
The value of all transactions is measured and reported in NZ…
Historical Cost
•Transactions are recorded at the dollar value when the origi…
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…
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…
10 terms
Accounting concepts
Business Entity
Going concern
Unit of Measurement
Realization of Revenue
A business financial information is recorded and reported sep…
Financial statements are prepared with the expectation that a…
All business transactions are recorded in a common unit of me…
Revenue from business transactions is recorded at the time go…
Business Entity
A business financial information is recorded and reported sep…
Going concern
Financial statements are prepared with the expectation that a…
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…
6 terms
Accounting Concepts
Accounting entity
Measurement Basis
Historical Cost
Going Concern
The financial affairs of the owner must be kept separated fro…
All the items in the financial statements should be able to b…
All the assets in the financial statements must be recorded a…
It is assumed that the business will continue to operate into…
Accounting entity
The financial affairs of the owner must be kept separated fro…
Measurement Basis
All the items in the financial statements should be able to b…
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 for…
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
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…
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
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…
Accounting Concepts
Business Entity
Unit of Measurement
Realization of Revenue
Objective Evidence
applied when a business's financial information is recorded a…
applied when business transactions are stated in numbers that…
applied when revenue is recorded at the time goods or service…
applied when a source document is prepared for each transaction
Business Entity
applied when a business's financial information is recorded a…
Unit of Measurement
applied when business transactions are stated in numbers that…
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…
1 of 10