22107 Study Guide - Final Guide: Matching Principle, Going Concern, Income Statement
Document Summary
Accounting is the process of identifying, measuring and communicating economic information to permit informed judgments and decisions. Economic entity: financial activities of a business can be separated form those of the business owner. Time period: economic information can be meaningfully captured and communicated over short periods of time. Monetary unit: accountants assume that the dollar is the most effective means to communicate economic activity. Going concern: accountants assume that a company will continue to operate into the foreseeable future. Accountants are regulated by the australian accounting standards board (aast) Gaap covers the standards and general body of rules accountants understand and observe. Lo2 reporting profitability: the income statement (y/s) An income statement reports a company"s expenses and revenues. A decrease in resources resulting from the sale of goods or services. An increase in resources resulting from the sale of goods or services.
