Accounting concepts

Contact: asand343@gmail.com
1. Entity
2. Money measurement
3. Going-concern
4. Cost
5. Realisation
6. Accruals
7. Matching
8. Periodicity
9. Consistency
10. Conservatisme
• Accounting concepts The affairs of the
business are distinct from
1. Separate Entity the personal affairs of
2. Money measurement its owner. The business is
an independent ENTITY.
3. Going-concern
4. Cost
5. Realization
6. Accruals
7. Matching
8. Periodicity
9. Consistency
10. Conservatism
• Accounting concepts
Records are kept in
1. Entity monetary terms, and only
2. Money measurement matters capable of being
expressed in monetary
3. Going-concern terms are reflected in the
4. Cost books.

5. Realization
6. Accruals
7. Matching
8. Periodicity
9. Consistency
10. Conservatism
• Accounting concepts
1. Entity
2. money measurement The business is assumed to
have a continuing and
3. Going-concern indefinite life. The
4. Cost business IS NOT on the
verge of extinction.
5. realization
6. Accruals
7. Matching
8. Periodicity
9. Consistency
10. conservatism
• Accounting concepts
1. Entity
2. money measurement
Accountants compute the
3. Going-concern value of an asset by
4. Cost reference to its
acquisition cost, AND NOT
5. realization by reference to its
6. Accruals expected future benefits.

7. Matching
8. Periodicity
9. Consistency
10. conservatism
• Accounting concepts
1. Entity
2. Money measurement
3. Going-concern
4. Cost Any change in the value of
an asset may only be
5. Realisation recognized at the moment
the firm REALIZES it, or
6. Accruals
disposes of that asset.
7. Matching
8. Periodicity
9. Consistency
10. Conservatism
 SFAC #1: Accrual
accounting attempts to
• Accounting concepts record the financial
1. Entity effects on an enterprise
of transactions and other
2. money measurement events and circumstances
The
thatrecognition
have cash of an
3. Going-concern
expense (or revenue)
consequences for the and
4. Cost the related in
enterprise liability
the periods
(or asset)
in which results from
these
5. realization
an accounting EVENT,
transactions, and
etc… occur
6. Accruals is not necessarily
rather than only in the
signaled by a cash
periods when cash is
7. Matching transaction.
received or paid.
8. Periodicity
9. Consistency
10. conservatism
• Accounting concepts
1. Entity
2. money measurement
3. Going-concern
4. Cost
Expenses
Revenues should be
and expenses
5. realization recognized in the
resulting from thesame
same
6. Accruals accounting period
transactions during
(or events,
which the firm has
circumstances, etc…)
7. Matching recognized the associated
should be recognized
8. Periodicity revenues.
simultaneously.
9. Consistency
10. conservatism
• Accounting concepts
1. Entity
2. money measurement
3. Going-concern
4. Cost
5. realization
6. Accruals
7. Matching Accounting reports must be
8. Periodicity prepared for fixed, and
relatively short, periods
9. Consistency of time.
10. conservatism
• Accounting concepts
1. Entity
2. money measurement
3. Going-concern
4. Cost
5. realization
6. Accruals
7. Matching
8. Periodicity Like transactions should
be treated the same way in
9. Consistency consecutive periods.
10. conservatism
• Accounting concepts
1.Separate Entity
2. Money measurement
3. Going-concern
4. Cost
(1) The accountant should
5. Realisation not anticipate profit, and
should provide for all
6. Accrual
possible losses;
7. Matching (2) Faced with several
methods of valuing an
8. Periodicity asset, the accountant
9. Consistency should choose that which
leads to the lesser value.
10. Conservatism

Contact: asand343@gmail.com