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Study sets matching "assumption accounting"

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Study sets matching "assumption accounting"

10 terms
accounting assumptions
period of time
expense recognition
monetary unit
reporting entity
to provide timely information, companies prepare and report f…
appropriate recognition when a company consumes economic reso…
accounting measurements for US companies are reported in doll…
the financial statements represent the business, rather than…
period of time
to provide timely information, companies prepare and report f…
expense recognition
appropriate recognition when a company consumes economic reso…
27 terms
Accounting Assumptions
Asset
Liability
Income
Equity
a resource with future economic benefits controlled by the en…
a debt that the entity owes
an inflow of resources resulting in an increase in equity oth…
the owners interest in the business
Asset
a resource with future economic benefits controlled by the en…
Liability
a debt that the entity owes
18 terms
Accounting Assumptions
Separate Entity
Going Concern
Monetary Unit
Historical Cost
The business' activities must be accounted for separately fro…
Assumption that the business will continue operating into the…
Businesses reports its financial results in terms of the nati…
The cost of an asset is recorded at its historical cash-equiv…
Separate Entity
The business' activities must be accounted for separately fro…
Going Concern
Assumption that the business will continue operating into the…
5 terms
Accounting Assumptions
Continuity (Going Concern) Assumption
Historical Cost (Objectivity) Assumption
Accounting Entity Assumption
Accounting Period Assumption
This supposes that the business is going to continue its oper…
This assumes that business transactions are recorded in terms…
The business is regarded as being an entity or body separate…
This Assumes that the life of a business is divided into arbi…
Continuity (Going Concern) Assumption
This supposes that the business is going to continue its oper…
Historical Cost (Objectivity) Assumption
This assumes that business transactions are recorded in terms…
9 terms
Accounting Assumptions
Qualitative Characteristics
Fundamental
Enhancing
Relevance
Relevance, Faithful Rep, Comparability, Verifiability, Timeli…
Relevance and Faithful Rep
Comparability, Verifiability, Timeliness, Understandability
Info capable of making a difference in a business decision by…
Qualitative Characteristics
Relevance, Faithful Rep, Comparability, Verifiability, Timeli…
Fundamental
Relevance and Faithful Rep
18 terms
Accounting Assumptions CHEMMP
Continuity (Going Concern) assumption
Historical cost assumption
Entity assumption (Accounting Entity)
Monetary Assumption
The assumption that the business will continue indefinitely a…
Items are shown at the price paid for them in transactions an…
Personal and business transaction are kept separate. e.g. if…
Items are recorded and shown in the local currency ($AUS). e.…
Continuity (Going Concern) assumption
The assumption that the business will continue indefinitely a…
Historical cost assumption
Items are shown at the price paid for them in transactions an…
12 terms
Accounting assumptions - more examples
The business is going through tough ti…
A business will close shortly so the m…
A business increases the value of some…
A business purchases some items at a b…
Follows the Continuity assumption
Breaches the Continuity assumption
Breaches the Historical Cost assumption
Follows the Historical Cost assumption
The business is going through tough ti…
Follows the Continuity assumption
A business will close shortly so the m…
Breaches the Continuity assumption
8 terms
Accounting Principles & Assumptions
Measurement (cost) Principle
Revenue Recognition Principle
Expense Recognition Principle (matching)
Full disclosure principle
accounting information is based on actual cost. Cost is measu…
Provides guidance when the company must recognize revenue. Re…
company records the expenses it incurred to generate the reve…
says that a company reports the details behind financial stat…
Measurement (cost) Principle
accounting information is based on actual cost. Cost is measu…
Revenue Recognition Principle
Provides guidance when the company must recognize revenue. Re…
11 terms
8 accounting principle and assumption
revenue recognition principle
matching principle
cost principle
going-concern assumption
1-nguyên tắc ghi nhận doanh thu
2-nguyên tắc phù hợp
3-nguyên tắc giá gốc
5-nguyên tắc tiếp tục hoạt động
revenue recognition principle
1-nguyên tắc ghi nhận doanh thu
matching principle
2-nguyên tắc phù hợp
10 terms
Accounting entity assumptions
Accounting Standards
Accounting Entity Assumption
Accounting Assumptions
Sole Trader
rules, practices and procedures accounting bodies must comply…
presumes a business enterprises finance is separate from the…
rules and or regulations on which all accounting decisions ar…
a business owned by one person
Accounting Standards
rules, practices and procedures accounting bodies must comply…
Accounting Entity Assumption
presumes a business enterprises finance is separate from the…
29 terms
Accounting Principles, Assumptions, Constraints
Is the rationale for why plant assets…
Indicates that personal and business r…
Ensures that all relevant financial in…
Assumes that the dollar is the "measur…
Going Concern assumption
Economic Entity Assumption
Full disclosure principle
Monetary unit assumption
Is the rationale for why plant assets…
Going Concern assumption
Indicates that personal and business r…
Economic Entity Assumption
29 terms
Accounting Principles, Assumptions, Constraints
Is the rationale for why plant assets…
Indicates that personal and business r…
Ensures that all relevant financial in…
Assumes that the dollar is the "measur…
Going Concern assumption
Economic Entity Assumption
Full disclosure principle
Monetary unit assumption
Is the rationale for why plant assets…
Going Concern assumption
Indicates that personal and business r…
Economic Entity Assumption
9 terms
Basic Accounting Assumptions
Expense recognition
Periodicity
Historical Cost Principle
Materiality
Record expenses in the period the related revenue is recogniz…
The life of an enterprise can be divided into artificial time…
The original transaction value upon acquisition.
Concerns the relative size of an item and its effect on decis…
Expense recognition
Record expenses in the period the related revenue is recogniz…
Periodicity
The life of an enterprise can be divided into artificial time…
14 terms
Principles and Assumptions of Accounting
General Principles
Specific Principles
Cost Principle
Matching Principle
the basic assumptions, concepts, and guidelines for preparing…
Detailed rules used in reporting business transactions and ev…
Accounting information is based on actual cost. Actual cost i…
A company must record its expenses incurred to generate the r…
General Principles
the basic assumptions, concepts, and guidelines for preparing…
Specific Principles
Detailed rules used in reporting business transactions and ev…
10 terms
Accounting Principles and Assumptions
Specific Accounting Principle
Going-Concern Assumption
General Accounting Principle
Business Entity Assumption
Usually created by a pronouncement from an authoritative body
Financial statements reflect the assumption that the business…
Derived from long-used and generally accepted accounting prac…
Every business is accounted for separately from its owner or…
Specific Accounting Principle
Usually created by a pronouncement from an authoritative body
Going-Concern Assumption
Financial statements reflect the assumption that the business…
Basic Assumptions/Principles of Accounting
Going concern assumption
Economic entity assumption
Full disclosure principle
Monetary unit assumption
Is the rationale for why plant assets are not reported at liq…
Indicates that personal and business record-keeping should be…
Ensures that all relevant financial information is reported.
Assumes that the dollar is the "measuring stick" used to repo…
Going concern assumption
Is the rationale for why plant assets are not reported at liq…
Economic entity assumption
Indicates that personal and business record-keeping should be…
14 terms
Accounting Assumptions and Framework Definitions
Accounting Entity Assumption
Monetary Assumption
Accounting Period Assumption
Going Concern Assumption
A business is a separate accounting entity from the owner, so…
All accounting records are in the Australian Monetary unit ($A)
The life of a business is divided into even intervals of time…
A business will continue for the foreseeable future.... Assets…
Accounting Entity Assumption
A business is a separate accounting entity from the owner, so…
Monetary Assumption
All accounting records are in the Australian Monetary unit ($A)
5 terms
5 Accounting Assumptions
Entity Assumption
Going-Concern Assumption
Monetary Unit Assumption
Period Assumption
a business if separate from its owners or other businesses
that the subject firm will operate indefinitely
transactions will be quantified in nominal dollars, or other…
business activities will be reported over specific periods
Entity Assumption
a business if separate from its owners or other businesses
Going-Concern Assumption
that the subject firm will operate indefinitely
29 terms
Accounting Principles, Assumptions, Constraints
Is the rationale for why plant assets…
Indicates that personal and business r…
Ensures that all relevant financial in…
Assumes that the dollar is the "measur…
Going Concern assumption
Economic Entity Assumption
Full disclosure principle
Monetary unit assumption
Is the rationale for why plant assets…
Going Concern assumption
Indicates that personal and business r…
Economic Entity Assumption
29 terms
Accounting Principles, Assumptions, Constraints
Is the rationale for why plant assets…
Indicates that personal and business r…
Ensures that all relevant financial in…
Assumes that the dollar is the "measur…
Going Concern assumption
Economic Entity Assumption
Full disclosure principle
Monetary unit assumption
Is the rationale for why plant assets…
Going Concern assumption
Indicates that personal and business r…
Economic Entity Assumption
Accounting Principles, Assumptions, Constraints
Is the rationale for why plant assets…
Indicates that personal and business r…
Ensures that all relevant financial in…
Assumes that the dollar is the "measur…
Going Concern assumption
Economic Entity Assumption
Full disclosure principle
Monetary unit assumption
Is the rationale for why plant assets…
Going Concern assumption
Indicates that personal and business r…
Economic Entity Assumption
8 terms
Accounting assumptions, principles, and constraints
Going concern assumption
Economic entity assumption
Full disclosure principle
Monetary Unit Assumption
Is the rationale for why plant assets are not reported at liq…
indicates that personal and business record-keeping should be…
Ensures that all relevant financial information is reported
Assumes that the dollar is the "measuring stick" used to repo…
Going concern assumption
Is the rationale for why plant assets are not reported at liq…
Economic entity assumption
indicates that personal and business record-keeping should be…
15 terms
Accounting qualities, assumptions, and principles
periodicity
going concern
economic entity
historical cost/cost
assumption that the life of a business can be divided into ar…
assumption that the company will continue in operation for th…
assumption that every economic entity can separately identifi…
accounting principle that states that companies should record…
periodicity
assumption that the life of a business can be divided into ar…
going concern
assumption that the company will continue in operation for th…
29 terms
Accounting Principles, Assumptions, Constraints
Going Concern assumption
Economic Entity Assumption
Full disclosure principle
Monetary unit assumption
Is the rationale for why plant assets are not reported at liq…
Indicates that personal and business record-keeping should be…
Ensures that all relevant financial information is reported
Assumes that the dollar is the "measuring stick" used to repo…
Going Concern assumption
Is the rationale for why plant assets are not reported at liq…
Economic Entity Assumption
Indicates that personal and business record-keeping should be…
18 terms
Traditional Assumptions of the Accounting Model
Business Entity
Going Concern or Continuity
Time Period
Monetary Unit
Exists independently of its owner's personal holdings; The ac…
Assumes that the entity being accounted for will remain in bu…
Entity can be accounted for with reasonable accuracy for a pa…
An assumption that requires that only those things that can b…
Business Entity
Exists independently of its owner's personal holdings; The ac…
Going Concern or Continuity
Assumes that the entity being accounted for will remain in bu…
8 terms
Principles and Assumptions of Accounting
Measurement (Cost) Principle
Revenue Recognition Principle
Matching Principle (Expense Recognition)
Full Disclosure Principle
Accounting information is based on actual costs.
Provides guidance on when a company must recognize revenue.
Prescribes that a company must record its expenses incurred t…
Requires a company to report the details behind financial sta…
Measurement (Cost) Principle
Accounting information is based on actual costs.
Revenue Recognition Principle
Provides guidance on when a company must recognize revenue.
10 terms
Accounting Assumptions & Principles
Business Entity Assumption
Monetary Assumption
Accounting Period Assumption
Historical Cost Principle
A business is separate from the owner of the business. The pe…
All business events can be measured in money. Must be given a…
The life of a business is divided into intervals of time know…
An asset is recored at it's acquisition value and this value…
Business Entity Assumption
A business is separate from the owner of the business. The pe…
Monetary Assumption
All business events can be measured in money. Must be given a…
18 terms
Qualitative Factors and Assumptions of Accounting
Economic Entity
Monetary Unit
Historical Cost
Recognition Principle
corporation is separate and distinct from owners
all amounts reports converted into same currency, assumed no…
use initial value because it is determinable and free from bias
accruals: revenues (when earned), expenses (when incurred)
Economic Entity
corporation is separate and distinct from owners
Monetary Unit
all amounts reports converted into same currency, assumed no…
9 terms
Accounting Assumptions, Principles and Constraints
Cost Constraint
Economic Entity Assumption
Full Disclosure Principle
Going Concern Assumption
Weighs the cost that companies will incur to provide the info…
An assumption that every economic entity can be separately id…
Dictates that companies disclose circumstances and events tha…
The company will continue in operation for the foreseeable fu…
Cost Constraint
Weighs the cost that companies will incur to provide the info…
Economic Entity Assumption
An assumption that every economic entity can be separately id…
8 terms
Principles and Assumptions of Accounting
Full Disclosure Principle
Cost Principle
Expense Recognition/Matching Principle
Revenue Recognition Principle
Must disclose all relevant information to investors
We record assents at the cost the company paid to buy them
Expenses are matched to the revenues they help create
We recognize revenue when its earned not necessarily when cas…
Full Disclosure Principle
Must disclose all relevant information to investors
Cost Principle
We record assents at the cost the company paid to buy them
10 terms
accounting principles and assumptions
economic entity assumption
going concern assumption
Monetary unit assumption
Periodicity Assumption
that activity can be identified with a particular unit of acc…
An accounting guideline which allows the readers of financial…
money is the common denominator of economic activity and prov…
implies that a company can divide its economic activities int…
economic entity assumption
that activity can be identified with a particular unit of acc…
going concern assumption
An accounting guideline which allows the readers of financial…
16 terms
0302. Assumptions, Accounting Principles
What is the entity assumption?
What is the going concern assumption?
What is the unit of measurement assump…
What is the concept of capital mainten…
We assume there is a separate accounting entity for each busi…
In the absence of information to the contrary, a business is…
Assets, liabilities, equities, revenues, expenses, gains, los…
Capital is said to be maintained when the firm has positive e…
What is the entity assumption?
We assume there is a separate accounting entity for each busi…
What is the going concern assumption?
In the absence of information to the contrary, a business is…
10 terms
Basic Accounting Assumptions/ principles
economic entity assumption
going concern assumption
monetary unit assumption
periodicity assumption
economic activity can be identified with a particular unit of…
the company will have a long life
money is the common denominator of economic activity and prov…
implies that a company can divide its economic activities int…
economic entity assumption
economic activity can be identified with a particular unit of…
going concern assumption
the company will have a long life
29 terms
Accounting Principles, Assumptions, Constraints
Is the rationale for why plant assets…
Indicates that personal and business r…
Ensures that all relevant financial in…
Assumes that the dollar is the "measur…
Going Concern assumption
Economic Entity Assumption
Full disclosure principle
Monetary unit assumption
Is the rationale for why plant assets…
Going Concern assumption
Indicates that personal and business r…
Economic Entity Assumption
29 terms
Accounting Principles, Assumptions, Constraints
Is the rationale for why plant assets…
Indicates that personal and business r…
Ensures that all relevant financial in…
Assumes that the dollar is the "measur…
Going Concern assumption
Economic Entity Assumption
Full disclosure principle
Monetary unit assumption
Is the rationale for why plant assets…
Going Concern assumption
Indicates that personal and business r…
Economic Entity Assumption
10 terms
Accounting Characteristics and Assumptions
Accounting entity assumption
Monetary assumption
Historical Cost/objectivity assumption
Continuity/going concern assumption
The assumption that the business and the owner are treated as…
The assumption that all transactions are made with cash
The assumption that assets are valued at the price they were…
That a business will continue and plans to continue indefinit…
Accounting entity assumption
The assumption that the business and the owner are treated as…
Monetary assumption
The assumption that all transactions are made with cash
Accounting Assumptions and Such
Economic Entity Assumption
Fair Value Principle
Full Disclosure Principle
Going Concern Assumption
An assumption that every economic entity can be separately id…
Assets and liabilities should be reported at fair value (the…
Accounting principle that dictates that companies disclose ci…
The assumption that the company will continue in operation fo…
Economic Entity Assumption
An assumption that every economic entity can be separately id…
Fair Value Principle
Assets and liabilities should be reported at fair value (the…
10 terms
Principles, Assumptions, and Constraints of Accounting
Principle
Principle
Principle
Principle
Measurment
Full Disclosure
Revenue Recognition
Expense Recognition
Principle
Measurment
Principle
Full Disclosure
13 terms
accounting principles and assumptions
monetary unit assumption
Economic Entity Assumption
Periodicity Assumption
Going Concern Assumption
requires that only those things that can be expressed in mone…
states that every economic entity can be separately identifie…
states that the life of a business can be divided into artifi…
The going concern assumption states that the business will re…
monetary unit assumption
requires that only those things that can be expressed in mone…
Economic Entity Assumption
states that every economic entity can be separately identifie…
8 terms
Accounting Principles and Assumptions
Cost Principle (Measurement)
Matching Principle
Revenue Recognition Principle
Full Disclosure Principle
Accounting information is based on actual cost. Actual cost i…
A company must record its expenses incurred to generate the r…
1. Recognize revenue when it is earned.... 2. Proceeds need not…
A company is required to report the details behind financial…
Cost Principle (Measurement)
Accounting information is based on actual cost. Actual cost i…
Matching Principle
A company must record its expenses incurred to generate the r…
29 terms
Accounting Principles, Assumptions, Constraints
Is the rationale for why plant assets…
Indicates that personal and business r…
Ensures that all relevant financial in…
Assumes that the dollar is the "measur…
Going Concern assumption
Economic Entity Assumption
Full disclosure principle
Monetary unit assumption
Is the rationale for why plant assets…
Going Concern assumption
Indicates that personal and business r…
Economic Entity Assumption
29 terms
Accounting Principles, Assumptions, Constraints
Is the rationale for why plant assets…
Indicates that personal and business r…
Ensures that all relevant financial in…
Assumes that the dollar is the "measur…
Going Concern assumption
Economic Entity Assumption
Full disclosure principle
Monetary unit assumption
Is the rationale for why plant assets…
Going Concern assumption
Indicates that personal and business r…
Economic Entity Assumption
40 terms
Accounting assumptions and principles
Account
Bank account
Accounts
Annual accounts
A record of money received and spent
Tài khoản
Sổ sách kế toán, báo cáo
Báo cáo thường niên
Account
A record of money received and spent
Bank account
Tài khoản
identifying accounting principles and assumptions
usually created by a pronouncement fro…
financial statements reflect the assum…
Derived from long used and generally a…
Every business is accounted for separa…
E. Specific accounting principle
G. Going-concern assumption
A. General accounting principle
C. Business entity assumption
usually created by a pronouncement fro…
E. Specific accounting principle
financial statements reflect the assum…
G. Going-concern assumption
8 terms
Principles and Assumptions of Accounting 1
Economic Unity Assumption
Continuity Assumption
Time Period Assumption
Monetary Unit Assumption
Company budget is separate from owners
will continue to operate long enough to carry out commitments
broken up into periods
Financial results in dollars, pesos...
Economic Unity Assumption
Company budget is separate from owners
Continuity Assumption
will continue to operate long enough to carry out commitments
29 terms
Accounting Principles, Assumptions, Constraints
Is the rationale for why plant assets…
Indicates that personal and business r…
Ensures that all relevant financial in…
Assumes that the dollar is the "measur…
Going Concern assumption
Economic Entity Assumption
Full disclosure principle
Monetary unit assumption
Is the rationale for why plant assets…
Going Concern assumption
Indicates that personal and business r…
Economic Entity Assumption
13 terms
Accrual accounting principles/ assumptions
Entity assumption
the going concern assumption
The monetary unit
the period assumption
a business is separate from its owners or other businesses
the subject firm will operate indefinitely
transactions will be quantified in nominal dollars, or other…
business activities will be reported over specific periods: o…
Entity assumption
a business is separate from its owners or other businesses
the going concern assumption
the subject firm will operate indefinitely
8 terms
Accounting Principles and Assumptions
Measurement Principle ... (or Cost Princi…
Revenue Recognition Principle
Expense Recognition Principle ... (or Mat…
Full Disclosure Principle
Accounting information is based on actual cost. Actual cost i…
1Recognize revenue when it is earned.... 2Proceeds need not be i…
A company must record its expenses incurred to generate the r…
A company is required to report the details behind financial…
Measurement Principle ... (or Cost Princi…
Accounting information is based on actual cost. Actual cost i…
Revenue Recognition Principle
1Recognize revenue when it is earned.... 2Proceeds need not be i…
Assumptions and Accounting Principles
Economic Entity
Going Concern
Periodicity
monetary Unit
All economic events identified with a particular economic ent…
Business entity will continue to operate indefinitely
Life of the company is divided into time periods to provide t…
Financial statements are measured in U.S dollars ... (not adjust…
Economic Entity
All economic events identified with a particular economic ent…
Going Concern
Business entity will continue to operate indefinitely
29 terms
Accounting Principles, Assumptions, Constraints
Going Concern assumption
Economic Entity Assumption
Full disclosure principle
Monetary unit assumption
Is the rationale for why plant assets are not reported at liq…
Indicates that personal and business record-keeping should be…
Ensures that all relevant financial information is reported
Assumes that the dollar is the "measuring stick" used to repo…
Going Concern assumption
Is the rationale for why plant assets are not reported at liq…
Economic Entity Assumption
Indicates that personal and business record-keeping should be…
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