ACCOUNTING CONCEPTS

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AAT Level 3 Financial Statement Flashcards on ACCOUNTING CONCEPTS, created by lizbielby on 04/10/2015.
lizbielby
Flashcards by lizbielby, updated more than 1 year ago
lizbielby
Created by lizbielby over 8 years ago
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Question Answer
ACCOUNTING CONCEPTS MATERIALITY GOING CONCERN ACCURALS
MATERIALITY Some items are of such low value that it is not worth recording them in the accounting records ie they are not material examples include: 1) small expense items grouped together as sundry expenses 2) small end of year items of office stationery not valued for the purpose of financial statements 3) low cost non current assets being charged as an expense in the statement of profit and loss
GOING CONCERN This presumes that the entity to which the financial statements relate will continue in the foreseeable future.
ACCRUALS This means the income and expenses are matched so that they concern the same goods/service and the same time period. The statement of profit/loss shows the amount of income that should have been received and the amount of expense that should have been incurred
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