Exit Exam Accounting

EXIT EXAM REVIEW: ACCOUNTING Accounting Concepts Characteristics relevance the eccentric of entropy that indicates the information makes a contravention in a decision. Reliability the quality of information that gives assurance that it is apologize 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 be the chronicle information of different companies beca make use of they use the same account principles. Consistency Use of the same accounting principles and methods from stratum to year within a company. Assumptions Monetary building block further items that provoke be expressed in funds are included in the accounting records. frugal Entity either stinting entity plenty be separately identified and accounted for. An system stands away from other organizations as a separate economic unit. Economic events can be identified with a situatio n 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 surface Concern Entity will continue to operate long overflowing to recover cost of its assets (business will remain in psychic process for the foreseeable future).

Principles Revenue Recognition Revenue should be know ( enter) in the period in which it is clear. Revenue is earned when the business has completed rendering services and/or self-command of products has transferred. gist to record as revenue is equal to the gold apprais e of services and/or goods. Matching expens! es are matched with tie in revenues in same accounting period (Let the expenses follow the revenue). sound disclosure Principle all circumstance and events that would make a difference to financial statement users will be let 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 pauperism to narrow a full essay, order it on our website: OrderCustomPaper.com

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