Accounting Concepts Flashcards
0
Q
Going concern
A
Keep going (continue to operate)
1
Q
Entity
A
Business is separate to owners
2
Q
Prudence
A
Cautious nature- recording sales, predicting losses before they happen
3
Q
Separate valuation
A
Value of each item recorded seperately
4
Q
Realisation
A
Income recorded when there’s a reasonable chance
5
Q
Dual aspect
A
Transactions have equal assets and liabilities- double entry book keeping
6
Q
Historic cost
A
Transaction recorded at time of completion
7
Q
Consistency
A
Uniformity when recording similar items
8
Q
Money measurement
A
Only Numerical items!
9
Q
Accruals
A
Revenues recorded are matched with the costa of gaining them
