Accounting

Question 1

What is the consistency principle

Answer 1

This is when a business is required to keep a decision from one year to the following

Question 2

What is the business entity principle

Answer 2

This is the assurance that transactions in a businesses organisation different to that of an owners.

Question 2

What is the duality principle

Answer 2

The idea of double entry bookkeeping

Question 3

What is the money management principle

Answer 3

That financial statements can only record info that has monetary value

Question 4

What is the going concern principle

Answer 4

This is when the preparations of accounting records is assuming that a business will continue trading for many more years

Question 5

What is the realisation principle

Answer 5

This principle is the prevention of a business from claiming to have made profits that aren’t yet definite

Question 6

What is the matching/accruals principle

Answer 6

The idea that profit & loss should be based on an accounting year

Question 7

What is the prudence principle

Answer 7

The assurance to make sure financial statements are not overstated or understated.