Accounting Concepts

Topics: Generally Accepted Accounting Principles, Balance sheet, Debt Pages: 3 (469 words) Published: September 4, 2012
|Term-Concepts |Definition | |Purpose of Accounting |Communicating financial information to end users so they can make informed decisions. | |Accounting Entity |The financial affairs of the business are separate and distinct from the financial affairs of the owner. | |Monetary Concept |All transactions are recorded in a common dollar term such as the New Zealand dollar. | |Historical Cost Concept |All transactions are recorded at their original purchase cost to the business. | |The Going Concern Concept |The financial statements are prepared on the assumption that the business will continue to operate in the| | |foreseeable future. | |Period Reporting Concept |Entities present financial statements on an annual basis to make comparisons with other years. | |Accrual Basis |Transactions are recognised when they occur and are reported in the financial statements of the period | | |which they relate. | | | | | Term-Specialised areas of |Definition | |accounting | | |Accounting Clerks/Technicians |Support professionals who help to record and prepare accounts and statements, and contribute to...
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