Accounting Concepts

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Mind Map by , created over 6 years ago

aLevel Business - Finance Mind Map on Accounting Concepts, created by hannahsophie.austin on 06/14/2013.

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Created by hannahsophie.austin over 6 years ago
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Accounting Concepts
1 Going Concern: -
1.1 The assumption that the Business is going to continue in the foreseeable future.
2 Accruals (Matching): -
2.1 The matching of costs and revenues to the final accounts in which goods and services were used.
3 Consistency: -
3.1 The continued adoption of policies for dealing with financial records.
4 Prudence: -
4.1 Where losses are provided for immediately in the financial records but profits are not recognised until they have been realised.
5 Materiality: -
5.1 Where items with a low monetary are not recorded individually.
6 Duality: -
6.1 The principle that every business transaction has two aspects and is recorded as a DEBIT and a CREDIT.
7 Business Entity: -
7.1 The assets and liabilities of the owner are kept separate from the assets and liabilities of the Business.
8 Realisation: -
8.1 Where revenue is regarded as having been received only when the ownership of goods are exchanged and where a sale is recorded when it is either a cash or credit purchase.
9 Money Measurement: -
9.1 Where only items with a monetary value are recorded in the financial records of a business.

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