Exit Exam Accounting

EXIT EXAM REVIEW: ACCOUNTING Accounting Concepts Characteristics relevancy the eccentric of information that indicates the information makes a contravention in a decision. Reliability the quality of information that gives assurance that it is forgo of erroneous belief and bias. Accounting records must be base on the close to reliable data available (verifiable by independent source). comparing Ability to comp ar the chronicle information of different companies beca make use of they use the same chronicle principles. Consistency Use of the same accounting principles and methods from family to year within a company. Assumptions Monetary building block only if items that push aside be expressed in funds be included in the accounting records. economical Entity either sparing entity drop be separately identified and accounted for. An system stands apart from other organizations as a separate economic whole. Economic events can be identified with a situat ion unit of accountability. Time Period The life of a line of products can be divided into artificial time periods so jobes can report information at regular intervals. way bulge out Concern Entity will continue to operate long plenteous to recover cost of its assets (business will remain in affable process for the foreseeable future).

Principles Revenue Recognition Revenue should be know ( enter) in the period in which it is realise. Revenue is earned when the business has completed rendering services and/or ownership of products has transferred. gist to record as revenue is equal to the hard currenc y appraise of services and/or goods. Matchi! ng expenses are matched with relate revenues in same accounting period (Let the expenses follow the revenue). skilful disclosure Principle all circumstance and events that would make a difference to financial statement users will be break (included in financial statements and notes). Cost Principle Assets/services acquired are recorded at actual, historical cost. Constraints Materiality whether an item is large...If you wishing to narrow a full essay, order it on our website: OrderCustomPaper.com

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