Financial Economics UBAF1033 BUSINESS ACCOUNTING I TUTORIAL 3: ACCOUNTING CONCEPTS AND CONVENTIONS Adopted from: Wood, F. & Sangster, A. (2012), Business Accounting 1 (12th ed ); Thomas A. & Ward, A. M. (2009), Introduction to Financial Accounting (6th ed); Roshayani, A., Laily, U. & Siti Maznah, M., (2007), Financial Accounting An Introduction (2nd ed); Past year Business Accounting I Questions MULTIPLE CHOICE QUESTIONS 1. What accounting concept / principle describe the following
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Conclusions Accounting Concepts and Conventions Introduction Accounting concepts and conventions as used in accountancy are the rules and guidelines by that the accountant lives. All formal accounting statements should be created, preserved and presented according to the concepts and conventions that follow. In the United Kingdom, four of the following accounting concepts are laid down in Statement of Standard Accounting Practice number 2 (SSAP 2: Disclosure of Accounting Policies), they
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Conclusions Accounting Concepts and Conventions Introduction Accounting concepts and conventions as used in accountancy are the rules and guidelines by that the accountant lives. All formal accounting statements should be created, preserved and presented according to the concepts and conventions that follow. In the United Kingdom, four of the following accounting concepts are laid down in Statement of Standard Accounting Practice number 2 (SSAP 2: Disclosure of Accounting Policies), they
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Accounting Horizons Vol. 26, No. 1 2012 pp. 125–133 American Accounting Association DOI: 10.2308/acch-50087 COMMENTARY Some Conceptual Tensions in Financial Reporting American Accounting Association’s Financial Accounting Standards Committee (FASC) Yuri Biondi, Jonathan Glover, Karim Jamal (Chair and principal co-author), James A. Ohlson, Stephen H. Penman, Shyam Sunder (invited principal co-author), and Eiko Tsujiyama SYNOPSIS: We examine four key conceptual tensions that are at the heart
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Audit theory and true and fair view The Primary objective of auditing is to produce a report by the auditor of his opinion of the truth and fairness of financial statements so that any person reading and using them can have belief in them. Different methodology can be used to arrive at his opinion: Vouching audit: Vouching means "such examination of the ledger entries as will satisfy an auditor not only that the entry is supported by documentary evidence but that it has been properly made upon
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Financial information is needed for decision making purpose. * Book keeping and Accounting will provide such information. * Meaning of Financial Accounting * Process of identifying, measuring, classifying, recording, summarizing and interpretation of the transactions of a business in terms of money to ascertain the result and financial position of business activities of particular period. * Accounting is the art of recording, classifying and summarizing, in a significant manner and
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Contents Contents 1 Abstract 2 Introduction to Accounting 2 CSL Ltd 2 Accounting Concepts and Conventions 2 Realization Concept 3 Going Concern Principle 3 Historical Cost Principle 3 Materiality 4 Dual Aspect Concept 4 Business Entity Concept 5 Consistency and Comparability 5 Conclusion on Accounting Concepts 6 Reference 6 Abstract Nowadays, Accounting is much more important for people from inside or outside company to make financial decisions. Financial information can
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Business Entity concept Business entity concept or Separate entity concept or Separate economic entity concept are different names for the same concept. According to business entity concept, the business is distinct and separate from its owners i.e. business and its owners should not be treated as one and the same thing. Accepting this concept means that the activities performed by the business/organization does not have anything to do with the owner of such business/organization and same goes
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THEORY OF ACCOUNTS ACCOUNTING CONCEPTS 1. Which of the following statements is/are true? I. Accounting is a service activity intended to fulfill a useful function in society II. Accounting involves the art of recording, classifying and summarizing transaction and events, and interpreting the results thereof. III. Accounting is an art but not a science IV. Accounting provides quantitative financial information intended to be useful in making economic decisions a. I, II, III, IV
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ACCOUNTING CYCLE The Series of business transactions which occur from the beginning of an accounting period to the end of an accounting period is referred any specific period of time for which a summary of business’s transaction is prepared. Steps in Accounting Cycle:1. 2. 3. Journalizing (Recording) Posting to Ledger (Classifying) Final Account (Summarizing) Now Explain Steps:1 Recording:- This is the basic function of accounting. All business transaction, as evidenced by some documents such
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