This document discusses key accounting concepts and principles such as:
- Business entity, which treats the business and its owners as separate entities.
- Historical cost, which records assets at their original cost rather than current value.
- Prudence, which only recognizes profits with reasonable certainty and makes provisions for all known losses and expenses.
- Materiality, which ignores immaterial amounts and discloses significant items separately.
It also explains the objectives of preparing financial statements for different users like investors, lenders and management. The limitations of conventional statements and concepts like realization, consistency and accruals are outlined.
This document discusses key accounting concepts and principles used to prepare financial statements. It outlines concepts like business entity, money measurement, going concern, historical cost, prudence/conservatism, and materiality. It also discusses principles such as consistency, accruals/matching, realization, and disclosure. The concepts and principles provide guidelines for recognizing revenues, expenses, and assets to give an accurate picture of a company's financial performance and position.
Accounting concepts and principles provide guidelines for preparing financial statements. Key concepts include:
- Business entity assumes separation of business and owner assets/finances.
- Accrual basis recognizes revenues when earned and expenses when incurred to match revenues and expenses across periods.
- Historical cost records assets at original cost rather than current values.
- Prudence prepares statements conservatively to avoid overstating profits and assets.
- Materiality excludes small value items from separate disclosure. Consistency applies accounting methods consistently across periods.
This document discusses key accounting concepts and principles used to prepare financial statements. It outlines concepts like business entity, money measurement, going concern, historical cost, prudence/conservatism, and materiality. It also discusses principles such as objectivity, consistency, accruals/matching, realization, uniformity, and disclosure. The concepts and principles provide guidelines for recognizing revenues, expenses, assets and liabilities to present a true and fair view of a company's financial position.
This document discusses key accounting concepts and principles. It outlines several important concepts including:
- Business entity - The business and owner are separate entities
- Historical cost - Assets are recorded at original cost rather than current value
- Prudence/conservatism - Only realized or certain profits and losses are recognized
- Accruals/matching - Revenues are matched with expenses in the period they are earned or incurred
It also describes the users of financial statements such as investors, lenders, management and others. Limitations of financial statements are noted as well as recognition criteria for revenues and expenses.
Accounting is a process that involves systematically collecting, processing, and communicating financial information. It requires skill and expertise, making it both a process and an art. The objective of accounting is not to merely record financial data, but to provide useful information to decision makers. Financial accounting specifically aims to maintain accurate records of cash balances, non-cash transactions, incomes/expenses, assets/liabilities, and more in order to determine profit/loss and the overall financial position of an entity. The information generated through financial accounting is meant to help management with tasks like cost control, fraud detection, and policy formulation.
1. This document discusses key accounting concepts and principles such as business entity, historical cost, consistency, and accruals/matching.
2. Some core concepts discussed include treating the business and its owners as separate entities, recording transactions in monetary terms, and preparing financial statements on the assumption the business will continue operating.
3. Important principles that modify accounting practices are also outlined, such as recognizing revenues and expenses according to when they are earned/incurred rather than when cash is paid/received, using prudence to avoid overstating profits, and providing relevant and objective information.
This document discusses key accounting concepts and principles that guide the preparation of financial statements. It outlines concepts like business entity, historical cost, matching, and realization which determine when revenues and expenses are recognized. Users of financial statements like investors, lenders, and managers are also identified who rely on statements to make important economic decisions. However, statements are noted to only provide partial information about a company's financial position.
Accounting Concepts and Principles with ExamplesRahul's Ventures
The document discusses key accounting concepts and principles that guide the preparation of financial statements. It describes 12 major concepts: business entity, money measurement, going concern, historical cost, prudence, materiality, objectivity, consistency, accruals/matching, realization, uniformity, and disclosure. The concepts establish guidelines around recognizing, valuing, and reporting economic events to help ensure financial statements provide a fair representation of a company's financial position and performance.
This document discusses key accounting concepts and principles used to prepare financial statements. It outlines concepts like business entity, money measurement, going concern, historical cost, prudence/conservatism, and materiality. It also discusses principles such as consistency, accruals/matching, realization, and disclosure. The concepts and principles provide guidelines for recognizing revenues, expenses, and assets to give an accurate picture of a company's financial performance and position.
Accounting concepts and principles provide guidelines for preparing financial statements. Key concepts include:
- Business entity assumes separation of business and owner assets/finances.
- Accrual basis recognizes revenues when earned and expenses when incurred to match revenues and expenses across periods.
- Historical cost records assets at original cost rather than current values.
- Prudence prepares statements conservatively to avoid overstating profits and assets.
- Materiality excludes small value items from separate disclosure. Consistency applies accounting methods consistently across periods.
This document discusses key accounting concepts and principles used to prepare financial statements. It outlines concepts like business entity, money measurement, going concern, historical cost, prudence/conservatism, and materiality. It also discusses principles such as objectivity, consistency, accruals/matching, realization, uniformity, and disclosure. The concepts and principles provide guidelines for recognizing revenues, expenses, assets and liabilities to present a true and fair view of a company's financial position.
This document discusses key accounting concepts and principles. It outlines several important concepts including:
- Business entity - The business and owner are separate entities
- Historical cost - Assets are recorded at original cost rather than current value
- Prudence/conservatism - Only realized or certain profits and losses are recognized
- Accruals/matching - Revenues are matched with expenses in the period they are earned or incurred
It also describes the users of financial statements such as investors, lenders, management and others. Limitations of financial statements are noted as well as recognition criteria for revenues and expenses.
Accounting is a process that involves systematically collecting, processing, and communicating financial information. It requires skill and expertise, making it both a process and an art. The objective of accounting is not to merely record financial data, but to provide useful information to decision makers. Financial accounting specifically aims to maintain accurate records of cash balances, non-cash transactions, incomes/expenses, assets/liabilities, and more in order to determine profit/loss and the overall financial position of an entity. The information generated through financial accounting is meant to help management with tasks like cost control, fraud detection, and policy formulation.
1. This document discusses key accounting concepts and principles such as business entity, historical cost, consistency, and accruals/matching.
2. Some core concepts discussed include treating the business and its owners as separate entities, recording transactions in monetary terms, and preparing financial statements on the assumption the business will continue operating.
3. Important principles that modify accounting practices are also outlined, such as recognizing revenues and expenses according to when they are earned/incurred rather than when cash is paid/received, using prudence to avoid overstating profits, and providing relevant and objective information.
This document discusses key accounting concepts and principles that guide the preparation of financial statements. It outlines concepts like business entity, historical cost, matching, and realization which determine when revenues and expenses are recognized. Users of financial statements like investors, lenders, and managers are also identified who rely on statements to make important economic decisions. However, statements are noted to only provide partial information about a company's financial position.
Accounting Concepts and Principles with ExamplesRahul's Ventures
The document discusses key accounting concepts and principles that guide the preparation of financial statements. It describes 12 major concepts: business entity, money measurement, going concern, historical cost, prudence, materiality, objectivity, consistency, accruals/matching, realization, uniformity, and disclosure. The concepts establish guidelines around recognizing, valuing, and reporting economic events to help ensure financial statements provide a fair representation of a company's financial position and performance.
This document discusses key accounting concepts and principles:
- The business entity concept treats the business and its owners as separate entities.
- The historical cost principle records assets at their original cost rather than current value.
- The matching principle recognizes revenues when earned and expenses when incurred to match revenues with related expenses over the same period.
- The materiality concept means that only significant items are disclosed separately in financial statements.
Accounting concepts and principles provide guidelines for preparing financial statements. Key concepts include:
- Business entity assumes separation of business and owner assets/finances.
- Accrual basis recognizes revenues when earned and expenses when incurred to match revenues and expenses across periods.
- Historical cost records assets at original cost rather than current values.
- Prudence prepares statements conservatively to avoid overstating profits and assets.
- Materiality excludes small value items from separate disclosure.
This document discusses accounting principles and generally accepted accounting principles (GAAP). It defines accounting and provides definitions from the AICPA and AAA. It outlines 9 accounting concepts: business entity, money measurement, going concern, historical cost, objectivity, accruals/matching, realization, dual aspect, and accounting period. It also discusses 4 accounting conventions: conservatism, materiality, consistency, and disclosure.
Accounting provides relevant, reliable, and comparable information to help users make better decisions. It involves identifying, recording, and communicating financial information about a business. The key accounting concepts include:
1) The business entity concept treats a business separately from its owners.
2) Transactions are recorded in monetary terms according to the historical cost, matching, and accrual concepts.
3) Financial statements are prepared assuming the business will continue operating (going concern concept).
The document discusses the key principles and concepts of accounting. It explains that accounting principles provide guidelines for preparing financial statements and include concepts like business entity, historical cost, and matching. Various users of financial statements are also identified, such as investors, lenders, and management. Their different information needs are described. Finally, specific accounting concepts like consistency and materiality are defined in further detail.
This document outlines key concepts in accounting principles including:
1. It introduces accounting concepts such as the business entity concept, money measurement concept, going concern concept, and others.
2. It explains accounting bases like cash basis, accrual basis, and hybrid basis of accounting.
3. It defines important accounting terminology like assets, liabilities, capital, revenue, expense, and the accounting equation.
1. The document discusses different types of business entities including sole traders, partnerships, and companies. It compares sole traders to partnerships and describes the differences between private and public limited companies.
2. The key business activities are described as services, merchandising/trading/retailing, and manufacturing. The costs associated with each are outlined.
3. Setting up a business requires understanding external forces in the political, economic, social, technological, geographical, and competitive environments. A SWOT analysis and establishing objectives are important initial steps. Planning, budgeting, and managing the business are also discussed.
Accounting Standards (AS 1-32) are issued by the Accounting Standards Board of ICAI to establish uniform standards for preparation of financial statements in accordance with Indian GAAP. These standards cover aspects like recognition, measurement, treatment, and disclosure of accounting policies and transactions. Adhering to these standards ensures true and fair financial reporting, comparability between entities, and reliability of financial information. ICAI issues the standards, and they are applicable to non-corporate entities, SMEs, and companies as per notification by regulatory authorities.
This document summarizes the key accounting concepts that were presented in a seminar by Nishad A. Mulla. It outlines 9 fundamental accounting concepts: 1) business entity, 2) money measurement, 3) going concern, 4) accounting period, 5) accounting cost, 6) dual aspect, 7) realization, 8) accrual, and 9) matching. These concepts establish the framework for collecting, classifying, measuring, and reporting financial information about a business entity in a meaningful way for economic decision making.
This presentation introduces the key concepts of financial accounting recognition and measurement. It lists six presenters and covers assumptions, principles, constraints, objectives and elements of financial accounting. The assumptions discussed are the economic entity, going concern, monetary unit and periodicity. The principles covered are measurement, revenue recognition, expense recognition and full disclosure. Constraints include cost-benefit, materiality, industry practice and conservatism. The objectives aim to provide useful information for investment, credit and cash flow decisions.
There are several main branches of accounting:
Financial accounting focuses on external users and communicating information through financial statements. Management accounting provides timely information for internal decision-making. Government accounting deals with recording and reporting government funds. Auditing examines books of accounts to ensure compliance, while tax accounting prepares tax returns. Cost accounting concerns cost collection and control, and helps set product prices. Accounting education and research develop curriculum and standards.
The document discusses several key accounting concepts:
- The entity concept treats a business and its owners as separate entities for accounting purposes. Personal transactions are separate from business transactions.
- The periodicity concept requires that financial statements like the balance sheet and income statement be prepared at regular intervals, such as monthly or annually, to determine profit and assess financial position.
- The money measurement concept states that all business transactions must be recorded in terms of a country's currency, such as Malaysian ringgit. Non-monetary items are not accounted for.
The document provides explanations of several other fundamental accounting concepts like going concern, matching, realization, accrual, consistency, historical cost, prudence, and materiality
This document discusses key accounting concepts and conventions. It defines accounting and outlines concepts such as the business entity, going concern, money measurement, dual aspect, accounting period, cost, realization, matching, and accrual. It also discusses conventions like full disclosure, consistency, materiality, and conservatism. The concepts and conventions establish the principles and framework for recording, classifying, and reporting financial information about economic entities.
This document provides an introduction to accounting. It discusses key accounting concepts like the accounting equation, accounting assumptions, users of accounting information, the accounting process, and different types of accounting. The accounting equation states that assets equal liabilities plus owner's equity. Key assumptions include the accounting entity, money measurement, accounting period, and going concern assumptions. Accounting provides information to internal and external users to help with decision making, planning, and control. The accounting process involves recording, summarizing, analyzing, and communicating financial transactions and information. There are three main types of accounting: financial accounting, cost accounting, and management accounting.
The document discusses key accounting concepts and principles used to prepare financial statements. It outlines concepts such as business entity, money measurement, going concern, historical cost, prudence/conservatism, and accruals/matching. It also discusses the objectives of financial statements for different users and limitations of conventional statements. Accounting principles like objectivity, consistency, materiality, and realization are explained with examples.
This document discusses key accounting concepts and conventions. It defines 8 accounting concepts: business entity, money measurement, accounting period, accounting cost, going concern, dual aspect, realization, and matching. It also discusses 4 accounting conventions: consistency, materiality, conservatism, and full disclosure. The concepts and conventions establish standard principles and practices for preparing accurate financial statements and reports.
Intoduction to management accounting (MAF251)Ismail Noordin
- Management accounting and financial accounting both involve decision making, record keeping and performance evaluation functions. They are both based on the principle of stewardship to be responsible and accountable for financial and operating performance.
- They use the same general accounting system to collect data and develop information. However, management accounting focuses more on internal reporting to help managers with decision making, while financial accounting focuses on external reporting for stakeholders.
- Some key similarities include using the same data collection system and providing information to fulfill accountability of financial and operating performance. However, management accounting reports are more flexible and focus on segments useful for decision making.
Accounting provides quantitative financial information to stakeholders to help them make informed business decisions. It involves identifying, measuring, recording and communicating economic information. The key financial statements are the income statement, balance sheet, statement of changes in equity, and cash flow statement. These statements provide information on a company's profitability, financial position, cash flows and changes in equity. Accounting plays an important role as the language of business and a decision-making tool.
1. Accounting involves recording, classifying, and summarizing financial transactions and events to provide information to decision makers.
2. Bookkeeping is the process of recording business transactions, while accounting builds on this by interpreting the information, compiling reports, and analyzing the financial position and performance of a business.
3. Financial accounting provides information to external users like investors and regulators, while management accounting informs internal decision making. Both require adherence to generally accepted accounting principles (GAAP) for consistency and accuracy.
Accounting for non accounting professionalsMunir Ahmad
This document provides an overview of basic accounting concepts for non-accounting professionals. It defines accounting as the process of recording, analyzing, and communicating financial transactions. It then outlines key accounting concepts like the basic accounting equation of assets equaling liabilities plus equity, the different accounting cycles like purchase, sales, and payroll, and basic financial statements including the balance sheet, income statement, and cash flow statement. It concludes with explaining tools for analysis like ratio analysis and an introduction to cost accounting, financial planning, and taxation.
Effective communication is a skill that can be learned regardless of age, background or experience. With self-confidence and knowledge of basics, one can get their point across. Key aspects of effective communication include choosing the right time and place for discussions, removing distractions, organizing ideas in one's mind beforehand, being clear about the purpose, staying on topic, thanking listeners, speaking articulately without mumbling, using body language like facial expressions and gestures consciously, and listening actively. During conflicts, it is important to listen to others, speak calmly, avoid power struggles and use "I" messages.
This document outlines the daily and Wednesday schedules for Mrs. Kurzweil's 5th grade class. The regular daily schedule includes periods for opening, Power Time, PE, math, recess, language arts, lunch, science/social studies, and dismissal. The Wednesday schedule replaces PE with additional math and language arts periods while keeping the same times for opening, Power Time, recess, lunch, and dismissal. The document also briefly mentions team building activities and expectations for respectful, listening, and pursuing excellence.
This document discusses key accounting concepts and principles:
- The business entity concept treats the business and its owners as separate entities.
- The historical cost principle records assets at their original cost rather than current value.
- The matching principle recognizes revenues when earned and expenses when incurred to match revenues with related expenses over the same period.
- The materiality concept means that only significant items are disclosed separately in financial statements.
Accounting concepts and principles provide guidelines for preparing financial statements. Key concepts include:
- Business entity assumes separation of business and owner assets/finances.
- Accrual basis recognizes revenues when earned and expenses when incurred to match revenues and expenses across periods.
- Historical cost records assets at original cost rather than current values.
- Prudence prepares statements conservatively to avoid overstating profits and assets.
- Materiality excludes small value items from separate disclosure.
This document discusses accounting principles and generally accepted accounting principles (GAAP). It defines accounting and provides definitions from the AICPA and AAA. It outlines 9 accounting concepts: business entity, money measurement, going concern, historical cost, objectivity, accruals/matching, realization, dual aspect, and accounting period. It also discusses 4 accounting conventions: conservatism, materiality, consistency, and disclosure.
Accounting provides relevant, reliable, and comparable information to help users make better decisions. It involves identifying, recording, and communicating financial information about a business. The key accounting concepts include:
1) The business entity concept treats a business separately from its owners.
2) Transactions are recorded in monetary terms according to the historical cost, matching, and accrual concepts.
3) Financial statements are prepared assuming the business will continue operating (going concern concept).
The document discusses the key principles and concepts of accounting. It explains that accounting principles provide guidelines for preparing financial statements and include concepts like business entity, historical cost, and matching. Various users of financial statements are also identified, such as investors, lenders, and management. Their different information needs are described. Finally, specific accounting concepts like consistency and materiality are defined in further detail.
This document outlines key concepts in accounting principles including:
1. It introduces accounting concepts such as the business entity concept, money measurement concept, going concern concept, and others.
2. It explains accounting bases like cash basis, accrual basis, and hybrid basis of accounting.
3. It defines important accounting terminology like assets, liabilities, capital, revenue, expense, and the accounting equation.
1. The document discusses different types of business entities including sole traders, partnerships, and companies. It compares sole traders to partnerships and describes the differences between private and public limited companies.
2. The key business activities are described as services, merchandising/trading/retailing, and manufacturing. The costs associated with each are outlined.
3. Setting up a business requires understanding external forces in the political, economic, social, technological, geographical, and competitive environments. A SWOT analysis and establishing objectives are important initial steps. Planning, budgeting, and managing the business are also discussed.
Accounting Standards (AS 1-32) are issued by the Accounting Standards Board of ICAI to establish uniform standards for preparation of financial statements in accordance with Indian GAAP. These standards cover aspects like recognition, measurement, treatment, and disclosure of accounting policies and transactions. Adhering to these standards ensures true and fair financial reporting, comparability between entities, and reliability of financial information. ICAI issues the standards, and they are applicable to non-corporate entities, SMEs, and companies as per notification by regulatory authorities.
This document summarizes the key accounting concepts that were presented in a seminar by Nishad A. Mulla. It outlines 9 fundamental accounting concepts: 1) business entity, 2) money measurement, 3) going concern, 4) accounting period, 5) accounting cost, 6) dual aspect, 7) realization, 8) accrual, and 9) matching. These concepts establish the framework for collecting, classifying, measuring, and reporting financial information about a business entity in a meaningful way for economic decision making.
This presentation introduces the key concepts of financial accounting recognition and measurement. It lists six presenters and covers assumptions, principles, constraints, objectives and elements of financial accounting. The assumptions discussed are the economic entity, going concern, monetary unit and periodicity. The principles covered are measurement, revenue recognition, expense recognition and full disclosure. Constraints include cost-benefit, materiality, industry practice and conservatism. The objectives aim to provide useful information for investment, credit and cash flow decisions.
There are several main branches of accounting:
Financial accounting focuses on external users and communicating information through financial statements. Management accounting provides timely information for internal decision-making. Government accounting deals with recording and reporting government funds. Auditing examines books of accounts to ensure compliance, while tax accounting prepares tax returns. Cost accounting concerns cost collection and control, and helps set product prices. Accounting education and research develop curriculum and standards.
The document discusses several key accounting concepts:
- The entity concept treats a business and its owners as separate entities for accounting purposes. Personal transactions are separate from business transactions.
- The periodicity concept requires that financial statements like the balance sheet and income statement be prepared at regular intervals, such as monthly or annually, to determine profit and assess financial position.
- The money measurement concept states that all business transactions must be recorded in terms of a country's currency, such as Malaysian ringgit. Non-monetary items are not accounted for.
The document provides explanations of several other fundamental accounting concepts like going concern, matching, realization, accrual, consistency, historical cost, prudence, and materiality
This document discusses key accounting concepts and conventions. It defines accounting and outlines concepts such as the business entity, going concern, money measurement, dual aspect, accounting period, cost, realization, matching, and accrual. It also discusses conventions like full disclosure, consistency, materiality, and conservatism. The concepts and conventions establish the principles and framework for recording, classifying, and reporting financial information about economic entities.
This document provides an introduction to accounting. It discusses key accounting concepts like the accounting equation, accounting assumptions, users of accounting information, the accounting process, and different types of accounting. The accounting equation states that assets equal liabilities plus owner's equity. Key assumptions include the accounting entity, money measurement, accounting period, and going concern assumptions. Accounting provides information to internal and external users to help with decision making, planning, and control. The accounting process involves recording, summarizing, analyzing, and communicating financial transactions and information. There are three main types of accounting: financial accounting, cost accounting, and management accounting.
The document discusses key accounting concepts and principles used to prepare financial statements. It outlines concepts such as business entity, money measurement, going concern, historical cost, prudence/conservatism, and accruals/matching. It also discusses the objectives of financial statements for different users and limitations of conventional statements. Accounting principles like objectivity, consistency, materiality, and realization are explained with examples.
This document discusses key accounting concepts and conventions. It defines 8 accounting concepts: business entity, money measurement, accounting period, accounting cost, going concern, dual aspect, realization, and matching. It also discusses 4 accounting conventions: consistency, materiality, conservatism, and full disclosure. The concepts and conventions establish standard principles and practices for preparing accurate financial statements and reports.
Intoduction to management accounting (MAF251)Ismail Noordin
- Management accounting and financial accounting both involve decision making, record keeping and performance evaluation functions. They are both based on the principle of stewardship to be responsible and accountable for financial and operating performance.
- They use the same general accounting system to collect data and develop information. However, management accounting focuses more on internal reporting to help managers with decision making, while financial accounting focuses on external reporting for stakeholders.
- Some key similarities include using the same data collection system and providing information to fulfill accountability of financial and operating performance. However, management accounting reports are more flexible and focus on segments useful for decision making.
Accounting provides quantitative financial information to stakeholders to help them make informed business decisions. It involves identifying, measuring, recording and communicating economic information. The key financial statements are the income statement, balance sheet, statement of changes in equity, and cash flow statement. These statements provide information on a company's profitability, financial position, cash flows and changes in equity. Accounting plays an important role as the language of business and a decision-making tool.
1. Accounting involves recording, classifying, and summarizing financial transactions and events to provide information to decision makers.
2. Bookkeeping is the process of recording business transactions, while accounting builds on this by interpreting the information, compiling reports, and analyzing the financial position and performance of a business.
3. Financial accounting provides information to external users like investors and regulators, while management accounting informs internal decision making. Both require adherence to generally accepted accounting principles (GAAP) for consistency and accuracy.
Accounting for non accounting professionalsMunir Ahmad
This document provides an overview of basic accounting concepts for non-accounting professionals. It defines accounting as the process of recording, analyzing, and communicating financial transactions. It then outlines key accounting concepts like the basic accounting equation of assets equaling liabilities plus equity, the different accounting cycles like purchase, sales, and payroll, and basic financial statements including the balance sheet, income statement, and cash flow statement. It concludes with explaining tools for analysis like ratio analysis and an introduction to cost accounting, financial planning, and taxation.
Effective communication is a skill that can be learned regardless of age, background or experience. With self-confidence and knowledge of basics, one can get their point across. Key aspects of effective communication include choosing the right time and place for discussions, removing distractions, organizing ideas in one's mind beforehand, being clear about the purpose, staying on topic, thanking listeners, speaking articulately without mumbling, using body language like facial expressions and gestures consciously, and listening actively. During conflicts, it is important to listen to others, speak calmly, avoid power struggles and use "I" messages.
This document outlines the daily and Wednesday schedules for Mrs. Kurzweil's 5th grade class. The regular daily schedule includes periods for opening, Power Time, PE, math, recess, language arts, lunch, science/social studies, and dismissal. The Wednesday schedule replaces PE with additional math and language arts periods while keeping the same times for opening, Power Time, recess, lunch, and dismissal. The document also briefly mentions team building activities and expectations for respectful, listening, and pursuing excellence.
The document provides instruction on computing a percent of a whole number by having students multiply the whole number by the decimal equivalent of the given percent, with examples such as finding that 30% of 40 is 12 by multiplying 40 by 0.30. Students are guided through multi-step word problems involving identifying the percent, converting it to decimal form, and interpreting the solution. Key terms like "of" and "means" are emphasized throughout the lesson.
This document discusses how to divide decimals using a fair share model. It provides examples of dividing decimals like 2.4 divided by 0.6. The key steps are to estimate the quotient, then use fair sharing with place value charts to calculate. Dividing decimals is like dividing whole numbers, but you must consider the decimal point. Practicing more examples can help identify patterns in the quotients.
This document provides information about Mrs. Kurzweil's 5th grade class. It outlines the classroom rules and values of respect, listening, and pursuing excellence. It describes activities to build teamwork and enrichment opportunities for gifted students. The document also includes the classroom behavior plan, grading scale, daily schedule, academic expectations for homework and classwork, an overview of Common Core standards, and resources for students.
Small business owners are always looking for ways to increase leads and increase customers. We have included how to do that and how to stay in touch with those leads and customers.
This document provides instruction on drawing inferences from text. It begins by defining an inference as something the reader thinks is true based on information provided, but is not directly stated. It then explains that to draw an inference, a reader uses textual evidence from the passage and their prior knowledge. Examples are provided of identifying textual evidence, explaining relevant prior knowledge, and making inferences. Learners are guided through this process with questions to check their understanding. The document emphasizes that drawing inferences is an important skill for comprehending texts fully, becoming better writers, and performing well on assessments.
This document outlines the daily and Wednesday schedules for Mrs. Kurzweil's 5th grade class. The regular daily schedule includes periods for opening, Power Time, PE, math, recess, language arts, lunch, science/social studies, and dismissal. The Wednesday schedule replaces PE with additional math and language arts periods while keeping the same times for opening, Power Time, recess, lunch, and dismissal. The document also briefly mentions team building activities and expectations for respectful, listening, and pursuing excellence.
The document discusses key accounting concepts and principles such as business entity, money measurement, going concern, historical cost, prudence, materiality, objectivity, consistency, accruals/matching, realization, uniformity, disclosure, and relevance. It provides examples and explanations of how each concept is applied when preparing financial statements in accordance with generally accepted accounting principles. The concepts aim to ensure financial statements are useful, reliable and comparable.
Accounting concepts and principles - Made EasyBhavita Bhatt
This document discusses key accounting concepts and principles. It defines concepts like business entity, money measurement, going concern, accounting period, accounting cost, dual aspect, objectivity, realization, accrual, and matching. It explains their meanings and significance for maintaining uniformity and consistency in accounting. Some principles covered are full disclosure, materiality, uniformity/consistency, prudence/conservatism, and substance over form. Various users of financial statements like investors, lenders, and management are also outlined.
Introduction to Accounting by Dr. Suresh VaddeSuresh Vadde
This document provides an introduction to accounting concepts. It defines accounting and discusses its importance for controlling financial performance and position. The key users of accounting information are identified as internal stakeholders like management and external stakeholders like investors. Financial accounting provides external reporting through financial statements, while managerial accounting provides internal reporting to support decision making. Accounting concepts like business entity, money measurement, accruals and conventions like consistency are also outlined. International standards like IAS and IFRS aim to harmonize accounting practices globally.
Introduction to Accounting by Dr. Suresh VaddeSuresh Vadde
This document provides an introduction to accounting concepts. It defines accounting as the process of identifying, measuring, and communicating financial information. It discusses the importance of accounting in providing reliable information to both internal and external users. Key accounting concepts covered include the accounting equation, revenue/expense recognition principles, and the going concern assumption. Financial accounting and management accounting are also introduced.
The document provides an overview of basic financial accounting concepts. It explains that accounting is based on the accounting equation of assets equaling liabilities plus owners' equity. Assets are valuable resources owned, while liabilities are obligations, and owners' equity is the residual interest in assets. Revenues increase owners' equity by providing goods/services, while expenses decrease it by consuming resources to generate revenue. Financial statements like the balance sheet present a company's assets, liabilities, and owners' equity at a point in time.
The document provides an overview of basic financial accounting concepts. It explains that accounting is based on the accounting equation of assets equaling liabilities plus owners' equity. Assets are valuable resources owned, while liabilities are obligations, and owners' equity is the residual interest in assets. Revenues increase owners' equity by providing goods/services, while expenses decrease it by consuming resources to generate revenue. Financial statements like the balance sheet present a company's assets, liabilities, and owners' equity at a point in time.
Accounting standards notes Dr. V M TidakeVishal Tidake
The document discusses Indian Accounting Standards (AS) as issued by the Institute of Chartered Accountants of India (ICAI). It provides definitions and explanations of key terms like accounting standards, accounting policies, revenue recognition, accounting for fixed assets, and depreciation accounting. Some of the main points covered include that accounting standards aim to standardize accounting policies and practices, the Accounting Standards Board of ICAI prepares the standards, and there are currently 32 accounting standards in India. The document also provides details on the objectives, disclosure requirements, and treatment of certain items under some major accounting standards like AS 1 on accounting policies, AS 6 on depreciation, AS 9 on revenue recognition, and AS 10 on fixed assets.
(MBA SEM 1) SEM 1 Accounting Principles.pptxgindu3009
Accounting principles provide guidelines for sound accounting practices and procedures. They aim to ensure uniformity and easy understanding of financial information.
There are two main categories of accounting principles: concepts and conventions. Concepts are basic assumptions used as a foundation for recording transactions, while conventions are customs that guide financial statement preparation.
Key concepts include business entity, money measurement, cost, going concern, dual aspect, realization, accrual, accounting period, and matching. Important conventions are consistency, conservatism, full disclosure, and materiality. Consistency provides comparability over time, while conservatism plays it safe and avoids overstating values. Full disclosure and materiality aim to make financial statements complete and understandable.
This document provides an overview of basic accounting concepts. It discusses that accounting is a service activity that provides quantitative financial information about economic entities. It then describes the three main business activities of financing, investing, and operating. The document outlines the purposes and phases of accounting, including recording, measuring, classifying, and summarizing transactions, and interpreting financial statements. It introduces the double-entry bookkeeping system and elements of financial statements. Finally, it lists typical account titles used in statements of financial position and performance.
This document provides an introduction to financial accounting and management accounting. It defines accounting as recording financial transactions to help users analyze a business. Financial accounting prepares financial statements for outsiders, while management accounting helps internal management maximize profits and make decisions. Cost accounting prepares information for management decisions. The document outlines the objectives, features, advantages, and users of financial accounting, as well as the differences between bookkeeping, accounting, and the various types of accounts. It also discusses management accounting tools and compares financial and cost accounting.
This document provides an introduction to financial accounting and management accounting. It defines accounting as recording financial transactions to help users analyze a business. Financial accounting prepares financial statements for outsiders, while management accounting helps internal management maximize profits and make decisions. Cost accounting prepares information for management decision making. The document also outlines the objectives, features, advantages, and users of financial accounting as well as the differences between financial accounting, cost accounting, and management accounting.
This document discusses key accounting concepts and principles that guide the preparation of financial statements. It describes 12 major concepts: business entity, money measurement, going concern, historical cost, prudence/conservatism, materiality, objectivity, consistency, accruals/matching, realization, uniformity, and disclosure. The concepts establish guidelines for recognizing and valuing assets, expenses and revenues to provide useful information to financial statement users.
Lec 1 INTRODUCTION TO FINANCIAL ACCOUNTING.pptxpal83111
This document provides an introduction to financial accounting. It outlines the course, covering topics such as the meaning of accounting, differences between bookkeeping and accounting, accounting concepts and conventions, branches of accounting, and the nature of accounts. Key terms are also defined, such as assets, liabilities, revenue, and expenses. The document is intended to provide understanding of how financial statements are prepared and the fundamentals of financial accounting theory.
Understanding Balance Sheets, Cash Flow, Income Statements Farm EconomicseAfghanAg
1. The document discusses key financial statements - balance sheets, income statements, and cash flow statements - that are used to understand the financial health and performance of agribusinesses.
2. Balance sheets summarize assets, liabilities, and net worth on a given date. Income statements show profits and losses over a period of time. Cash flow statements indicate cash inflows and outflows.
3. The financial statements are used to analyze the feasibility, risk, and profitability of agribusinesses through liquidity ratios (like current ratio), solvency ratios (like debt-to-asset ratio), and profitability ratios (like return on assets). High liquidity, solvency, and profit
LBS Introduction to Financial Accounting.pptxNamishGupta10
The document provides an overview of basic concepts in financial accounting. It discusses key concepts like identifying transactions, measuring transactions in monetary terms, recording transactions, classifying and summarizing transactions, analyzing relationships, interpreting results, and communicating information to users. It also outlines the branches of accounting and their purposes, as well as accounting principles, standards, and the process of converging with International Financial Reporting Standards.
LBS Introduction to Financial Accounting (1).pptxparthwalia8
The document provides an overview of basic concepts in financial accounting. It discusses key concepts like identifying transactions, measuring transactions in monetary terms, recording transactions, classifying and summarizing transactions, analyzing relationships, interpreting results, and communicating information to users. It also outlines the branches of accounting and their purposes, as well as accounting principles, standards, and the process of converging with International Financial Reporting Standards.
6. List and define the underlying conditions, or assumptions, which .pdfarihantpatna
6. List and define the underlying conditions, or assumptions, which have had an impact on the
development of GAAP.
Solution
ANSWER:
The underlying conditions/ assumptions, which have had an impact on the development of
GAAP are as follows:
--Business entity: The company for which the financial statements are prepared is distinct and
separate from the owners.
--Going concern or continuity : The assumption is made that the organisation will remain in
business for an indefinite time frame.
--Monetary unit : Accountants requires certain standard of measure to bring financial
transactions together in an appropriate way.
--Realization: Revenue must be recognized when the earning process is virtually complete and
the exchange value need to be objectively determined
--Matching: This concept states to recognize the costs that are related with the recognized
revenue
--Full disclosure: Accounting reports must disclose all facts that may influence the judgment of
an informed reader
--Materiality: The approach involves the relative size and importance of an item to a business.
--Verifiability: The accountant need to adhere as closely as possible to verifiable data.
--Industry practices: Few business use accounting reports that do not conform to the general
theory that underlies accounting
--Transaction approach : The accountant records only events that affect the business financial
position and also can be reasonably determined in monetary terms.
--Accrual basis: Expenses need to recognized when incurred (matching concept), and revenue
are to be recognized when it is realized (realization concept), and
--Consistency: The business must give the similar treatment to comparable transactions from
period to period
--Conservatism : The measurement with the least favorable effect on financial position and net
income in the current period need to be selected.
--Historical cost : Of the numerous values that could be used, the objective and determinable
value should be selected
-- Time period With this assumption, inaccuracies of accounting for entity short of its complete
life span are accepted..
The document provides an overview of key concepts in financial accounting including:
- The meaning and objectives of financial accounting
- The advantages and limitations of financial accounting
- Accounting principles like the accounting equation, concepts, and conventions
- International accounting standards set by the IASB
- Users of accounting information both internal and external to a business
This document provides an overview of key accounting concepts, principles, and standards. It discusses Generally Accepted Accounting Principles (GAAP) which aim to improve financial reporting consistency. The 8 major accounting concepts are described, such as the business entity concept and matching concept. The 4 main accounting conventions around consistency, full disclosure, conservatism, and materiality are also summarized. Finally, the document outlines what accounting standards are, their importance in bringing uniformity and comparability to financial statements, and provides an example of Accounting Standard AS-1 on disclosure of accounting policies.
2. Introduction
• Actually there are a number of accounting
concepts and principles based on which we
prepare our accounts
• These generally accepted accounting
principles lay down accepted assumptions
and guidelines and are commonly referred
to as accounting concepts
2
3. Users of Financial Statements
• Investors
– Need information about the profitability, dividend yield
and price earnings ratio in order to assess the quality
and the price of shares of a company
• Lenders
– Need information about the profitability and solvency of
the business in order to determine the risk and interest
rate of loans
• Management
– Need information for planning, policy making and
evaluation
• Suppliers and trade creditors
– Need information about the liquidity of business in
order to access the ability to repay the amounts owed to 3
them
4. • Government
– Need information about various businesses for statistics
and formulation of economic plan
• Customers
– Interested in long-tem stability of the business and
continuance of the supply of particular products
• Employees
– Interested in the stability of the business to provide
employment, fringe benefits and promotion opportunities
• Public
– Need information about the trends and recent
development
4
5. Limitations of conventional
financial statements
• Companies may use different
methods of valuation, cost calculation
and recognizing profit
• The balance sheet does not reflect
the true worth of the company
• Financial statements can only show
partial information about the
financial position of an enterprise,
instead of the whole picture
5
9. Business Entity
• Meaning
– The business and its owner(s) are two
separate existence entity
– Any private and personal incomes and
expenses of the owner(s) should not be
treated as the incomes and expenses of
the business
9
11. • Examples
– Insurance premiums for the owner’s
house should be excluded from the
expense of the business
– The owner’s property should not be
included in the premises account of the
business
– Any payments for the owner’s personal
expenses by the business will be treated
as drawings and reduced the owner’s
capital contribution in the business
11
13. Money Measurement
• Meaning
– All transactions of the business are
recorded in terms of money
– It provides a common unit of
measurement
• Examples
– Market conditions, technological
changes and the efficiency of
management would not be disclosed in
the accounts
13
15. Going Concern
• Meaning
– The business will continue in operational
existence for the foreseeable future
– Financial statements should be prepared
on a going concern basis unless
management either intends to liquidate
the enterprise or to cease trading, or
has no realistic alternative but to do so
15
16. • Example
– Possible losses form the closure of
business will not be anticipated in the
accounts
– Prepayments, depreciation provisions
may be carried forward in the
expectation of proper matching against
the revenues of future periods
– Fixed assets are recorded at historical
cost
16
18. Historical Cost
• Meaning
– Assets should be shown on the balance
sheet at the cost of purchase instead of
current value
• Example
– The cost of fixed assets is recorded at
the date of acquisition cost. The
acquisition cost includes all expenditure
made to prepare the asset for its
intended use. It included the invoice
price of the assets, freight charges,
insurance or installation costs 18
20. Prudence/Conservatism
• Meaning
– Revenues and profits are not
anticipated. Only realized profits with
reasonable certainty are recognized in
the profit and loss account
– However, provision is made for all known
expenses and losses whether the amount
is known for certain or just an
estimation
– This treatment minimizes the reported
profits and the valuation of assets 20
21. • Example
– Stock valuation sticks to rule of the
lower of cost and net realizable value
– The provision for doubtful debts should
be made
– Fixed assets must be depreciated over
their useful economic lives
21
23. Materiality
• Meaning
– Immaterial amounts may be aggregated
with the amounts of a similar nature or
function and need not be presented
separately
– Materiality depends on the size and
nature of the item
23
24. • Example
– Small payments such as postage,
stationery and cleaning expenses should
not be disclosed separately. They should
be grouped together as sundry expenses
– The cost of small-valued assets such as
pencil sharpeners and paper clips should
be written off to the profit and loss
account as revenue expenditures,
although they can last for more than one
accounting period
24
26. Objectivity
• Meaning
– The accounting information should be
free from bias and capable of
independent verification
– The information should be based upon
verifiable evidence such as invoices or
contracts
26
27. • Example
– The recognition of revenue should be
based on verifiable evidence such as the
delivery of goods or the issue of
invoices
27
29. Consistency
• Meaning
– Companies should choose the most
suitable accounting methods and
treatments, and consistently apply them
in every period
– Changes are permitted only when the
new method is considered better and
can reflect the true and fair view of the
financial position of the company
– The change and its effect on profits
should be disclosed in the financial
statements 29
30. • Examples
– If a company adopts straight line
method and should not be changed to
adopt reducing balance method in other
period
– If a company adopts weight-average
method as stock valuation and should not
be changed to other method e.g. first-
in-first-out method
30
32. Accruals/Matching
• Meaning
– Revenues are recognized when they are
earned, but not when cash is received
– Expenses are recognized as they are
incurred, but not when cash is paid
– The net income for the period is
determined by subtracting expenses
incurred from revenues earned
32
33. • Example
– Expenses incurred but not yet paid in
current period should be treated as
accrual/accrued expenses under current
liabilities
– Expenses incurred in the following
period but paid for in advance should be
treated as prepayment expenses under
current asset
– Depreciation should be charged as part
of the cost of a fixed asset consumed
during the period of use
33
34. Problems in the
recognition of expenses
• Normally, expenses represents
resources consumed during the
current period. Some costs may
benefit several accounting periods,
for example, development
expenditures, depreciation on fixed
assets.
34
35. Recognition criteria for
expenses
• Association between cause and effect
– Expenses are recognized on the basis of a
direct association between the expenses
incurred on the basis of a direct association
between the expenses incurred and revenues
earned
– For example, the sales commissions should be
accounted for in the period when the products
are sold, not when they are paid
35
36. • Systematic allocation of costs
– When the cost benefit several accounting
periods, they should be recognized on the basis
of a systematic and rational allocation method
– For example, a provision for depreciation
should be made over the estimated useful life
of a fixed asset
• Immediate recognition
– If the expenses are expected to have no
certain future benefit or are even without
future benefit, they should be written off in
the current accounting period, for example,
stock losses, advertising expenses and
research costs
36
38. Realization
• Meaning
• Revenues should be recognized when
the major economic activities have
been completed
• Sales are recognized when the goods
are sold and delivered to customers
or services are rendered
38
39. Recognition of revenue
• The realization concept develops rules for
the recognition of revenue
• The concept provides that revenues are
recognized when it is earned, and not when
money is received
• A receipt in advance for the supply of
goods should be treated as prepaid income
under current liabilities
• Since revenue is a principal component in
the measurement of profit, the timing of
its recognition has a direct effect on the
profit
39
40. Recognition criteria for
revenues
• The uncertain profits should not be
estimated, whereas reported profits
must be verifiable
• Revenue is recognized when
1. The major earning process has substantially
been completed
2. Further cost for the completion of the
earning process are very slight or can be
accurately ascertained, and
3. The buyer has admitted his liability to pay
for the goods or services provided and the
ultimate collection is relatively certain
40
41. • Example
– Goods sent to our customers on sale or
return basis
– This means the customer do not pay for
the goods until they confirm to buy. If
they do not buy, those goods will return
to us
– Goods on the ‘sale or return’ basis will
not be treated as normal sales and
should be included in the closing stock
unless the sales have been confirmed by
customers
41
42. Problems in the
recognition of revenue
• Normally, revenue is recognized when
there is a sale
• The point of sales in the earning process is
selected as the most appropriated time to
record revenues
• However, if revenue is earned in a long and
continuous process, it is difficult to
determine the portion of revenue which is
earned at each stage
• Therefore, revenue is permitted to be
recorded other than at the point of sales
42
43. Exceptions to rule of sales
recognition
1. Long-term contracts
– Owning to the long duration of long-term
contracts, part of the total profit estimated
to have been arisen from the accounting
period should be included in the profit and
loss account
1. Hire Purchase Sale
– Hire purchase sales have long collection
period. Revenue should be recognized when
cash received rather than when the sale
(transfer of ownership) is made
– The interest charged on a hire purchase sale
43
constitutes the profit of transaction
44. 3. Receipts from subscriptions
- A publisher receives subscriptions before it
sends newspapers or magazines to its
customers
- It is proper to defer revenue recognition until
the service is rendered.
- However, part of subscription income can be
recognized as it is received in order to match
against the advertising expenses incurred
44
46. Disclosure
• Meaning
– Financial statements should be prepared
to reflect a true and fair view of the
financial position and performance of
the enterprise
– All material and relevant information
must be disclosed in the financial
statements
46
48. Uniformity
• Meaning
– Different companies within the same
industry should adopt the same
accounting methods and treatments for
like transactions
– The practice enables inter-company
comparisons of their financial positions
48
50. Relevance
• Meaning
– Financial statements should be prepared
to meet the objectives of the users
– Relevant information which can satisfy
the needs of most users is selected and
recorded in the financial statement
50