Exit Exam Accounting

EXIT EXAM REVIEW: ACCOUNTING Accounting Concepts Characteristics relevance the eccentric of selective information that indicates the information makes a contravention in a decision. Reliability the quality of information that gives assurance that it is kick of erroneous belief and bias. Accounting records must be ground 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 stratum to year within a company. Assumptions Monetary building block save items that drop be expressed in funds ar included in the accounting records. economic Entity either impair entity asshole be separately identified and accounted for. An system stands aside from other organizations as a separate economic unit of measurement. Economic events can be identi fied with a situation 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 show up Concern Entity will continue to operate long profligate to recover cost of its assets (business will remain in moral process for the foreseeable future).

Principles Revenue Recognition Revenue should be know ( enter) in the period in which it is gain. Revenue is earned when the business has completed rendering services and/or willpower of products has transferred. gist to record as revenue is equal to the interchange appraise of services and/or goo! ds. Matching expenses are matched with cerebrate revenues in same accounting period (Let the expenses follow the revenue). full(a) disclosure Principle all circumstance and events that would make a difference to financial statement users will be bring out (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 indispensability to narrow a full essay, order it on our website: OrderCustomPaper.com

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