ACC2100 Study Guide - Final Guide: Going Concern, Historical CostPremium

2 pages55 viewsFall 2017

Department
Accounting
Course Code
ACC2100
Professor
Dr Dharmendra Naidu
Study Guide
Final

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Understandability-
Reports(should(be(presented(in(a(manner(that(make(it(easy(for(the(users(to(
comprehend(their(meaning(
Reliability-
Reports(should(contain(information(verified(by(source(document(evidence(
so(that(it(is(free(from(bias(
Relevance-
Reports(should(be(include(all(the(information(that(useful(for(decision(making(
Comparability-
Reports(should(be(able(to(matched(up(to(each(other(over(time(through(the(
use(of(consistent( accounting(procedures(
Consistency-
A(business(should(be(use(the(same(accounting(methods(to(allow(for(a(comparison(
of(reports(from(one(period(to(the(next(
Going-concern-
The(life(of(a(business(is(assumed(to(be(continuous(and(its(records(are(kept(in(that(
basis(
Historical-cost-
Transactions(should(be(records(at(their(original(purchase(price,(as(this(value(is(
verifiable(by(source(document(evidence(
Monetary-unit-
All(item(must(be(recorded(and(reported(in(the(currency(of(the(country(in(which(the(
reports(are(prepared(
Entity-
A(business(is(separate(from(the(owner(and(other(entities(and(its(record(should(be(
kept(on(this(basis(
Conservatism-
Losses(should(be(recorded(when(probable(but(gains(only(recorded(when(certain,(so(
that(liabilities( are(not(understated(and(assets(are(not(overstated(
Reporting-period-
The(life(of(a(business(is(divide(into(periods(of(time.(Records(should(reflect(the(
period(in(which(the(transaction(occurs((((
QUALITATIVE)CHARACTERISTIC))4
Tuesday,( 23(May(2017
9:17(pm
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