The historical cost concept means expenses and assets must be recorded with their original cost according to its representation cost of things from the past. CITATION Wil09 \l 17417 (Wild‚ Shaw‚ & Barbara‚ 2009) For example‚ APPLE Company bought equipment at the price of RM 10‚000 and after few months‚ the equipment is then estimated to drop in value. The cost of the purchase RM 10 000 would be recorded in the financial report because there is official receipt and documents supporting the value
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Accounting Concepts Underlying Assumptions‚ Principles‚ and Conventions Assumptions The following are basic financial accounting assumptions: Separate entity assumption - the business is an entity that is separate and distinct from its owners‚ so that the finances of the firm are not co-mingled with the finances of the owners. • Going concern assumption - the business is going to be operating for the foreseeable future. Stable monetary unit assumption - e.g. the U.S. dollar • Fixed
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Islamic accounting is greatly discussed between the academician and professional personnel that have already did some research about the differences between conventional and Islamic accounting. Therefore‚ we can identify the differences with the article written by them. For example‚ Mohd Ibrahim (2001)‚ Baydoun and Willett (2000)‚ Toshikazu Hayashi and so forth. Thus‚ in their articles they have stated that there are several differences that can be spotted between both types of accounting are the
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The lecture last night discussed accrual accounting concepts such as timing issues‚ and the basics of adjusting entries. The discussion went into more detail on periodicity assumption and how accounting divides the economic life of a business into artificial time periods. These time periods are generally a month‚ a quarter‚ or a year‚ now whether it is a fiscal year or a calendar year that is determined by the company itself. The lecture then reviews the revenue recognition principle which expects
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truck and an overhead pulley system‚ in this year’s capital budget. The projects are independent. The cash outlay for the truck is $17‚100 and that for the pulley system is $22‚430. The firm’s cost of capital is 14%. After-tax cash flows‚ including depreciation‚ are as follows: Year Truck Pulley 1 $5‚100 $7‚500 2 $5‚100 $7‚500 3 $5‚100 $7‚500 4 $5‚100 $7‚500 5 $5‚100 $7‚500 Calculate the IRR‚ the NPV‚ and the MIRR for each project‚ and indicate the correct accept-reject decision for each.
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Accounting concepts and conventions [pic] Going concern This concept is the underlying assumption that any accountant makes when he prepares a set of accounts. That the business under consideration will remain in existence for the foreseeable future. In addition to being an old concept of accounting‚ it is now‚ for example‚ part of UK statute law: reference to it can be found in the Companies Act 1985. Without this concept‚ accounts would have to be drawn up on the ’winding up’ basis
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DIFFERENCES BETWEEN CONVENTIONAL AND ISLAMIC ACCOUNTING ABSTRACT The concern of this project paper is to explore the differences between Islamic accounting and its conventional counterpart. The distinctions need to be addressed as both accounting is presently thought of many people as synonymous. There is danger for such kind of perception because the basic building blocks for respective accounting are worlds apart. As for professional accountants who have been taught on the idea for accounting to be ‘objective’
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conservation Prudence concept: revenue and profits are included in the balance sheet only when they are realized(or there is reasonable ’certainty ’ of realizing them) butliabilities are included when there is a reasonable ’possibility ’ of incurring them. Also called conservation concept. Du Pont analysis A type of analysis that examines a company ’s Return on Equity (ROE) by breaking it into three main components:profit margin‚ asset turnover and leverage factor. By breaking the ROE into
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Through online accounting homework help‚ the students can get vital and recent information about the various topics covered in accounting as mentioned below which will enable them to gain good scores in examinations as well as in submitting their assignments. Accounting concepts: The various terms used for describing the basic ideas are: concepts‚ postulates‚ propositions‚ basic assumptions‚ underlying principles‚ fundamentals‚ conventions‚ doctrines‚ rules etc. Business entity concepts: In accounting we
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Accounts basic concept with tally Accounting: It is an art of recording‚ classifying and summarizing in significant manner and in terms of money‚ transactions and events which are of financial character and interpreting the results thereof. Business transaction: A business transaction is “The movement of money and money’s worth form one person to another”. Or exchange of values between two parties is also known as “Business Transaction”. Purchase: A purchase means goods purchased by a businessman
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