Give 3 objectives of Accounting Principles
a) ensures reliability
b) ensures comparability
c) ensures consistency and transparency
Define Accounting principles
Accounting Principles are the set of rules and guidelines that companies must follow when reporting financial data.
Name 2 functions of Accounting principles
a) Presentation of Information
b) Full disclosure of Accounting Info
c) Measurement of financial transactions
The business entity concept declares that?
The business is treated as distinct from the individuals who own or manage it, and still continues even after their death.
The money measurement concept holds that?
Only transactions involving monetary value are to be recorded and recognized in the books of accounts.
The Periodicity Concept states that?
To facilitate comparison a company is divided into smaller periods.
The matching concepts states that
Income and expenses must be recorded in the same accounting period
The going concern concept holds that
The business is assumed to exist for an indefinite period and is not established with the objective of closing it down.
An increase in assets is?
Debited
An increase in Liability is?
Credited
An increase in Equity is?
An increase in Revenue is?
An increase in Expenses is?
An increase in Capital should be?
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