Assumptions, Principles, and Constraints Hcemac XACC/280 · There are three major guidelines that are used in the conceptual framework of accounting also known as assumptions, principles, and constraints. Assumptions provide a foundation for the accounting process (Weygandt, Kimmel & Kieso, 2008, p. 297).These include monetary unit assumption which states that only monetary data can be reported, economic entity assumption
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factors that can play a detrimental role where making the wrong decision can become costly. Such factors include some of the ten principles of economics and the strength of the economy as a whole. All of these factors play a role in which I decide if buying a home is in my best interest. There are ten principles of economics; these principles are based on the ways that people make decisions, how people interact, and how the economy works as a whole. In deciding to
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PHOENIX How People Make Economic Decisions The word economy comes from the Greek word for “one who manages a household” and this concept itself involves decision-making. Such decisions are framed by activities related to people’s behavior in a society facing constant changes in response to incentives, making decisions pursuing different goals with different alternatives, and comparing marginal benefits and marginal costs to reach such goals. Principles of individual decision-making
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entering these markets, and how each type of structure maximizes profits. Markets are broken down into a few various categories. These categories are perfect competition, monopolies, monopolistic competition and oligopolies. An economist, citing economic theory, may express a preference to one type of structure based on the outcomes they can yield. The structure of each structure type is based on the traits of its business types. The attributes a business will display changes with the number of
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reliable, and comparable information about an organization’s economic activities. · Recordkeeping, or bookkeeping, is the recording of financial transactions, either manually or electronically, for the purpose of creating a reliable bank of data · Primary objective of accounting- to provide useful info for decision-making · Accounting info results from the accounting activities of identifying, measuring, recording, reporting, and analyzing economic transactions. 1. What is the major objective of accounting
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Explaining Basic Accounting Concepts and Business Structures Matthew Philip Moshi ACC/537 September 17, 2012 Joseph P McDonald Basic Accounting Concepts and Business Structures The catastrophic collapse of the stock market in 1929, subsequently resulting in the great depression will forever coincide with the private sector’s formulation and subsequent issue of formal accounting standards (Keiso, Warfield, & Weygandt, p. 6, 2007). Appeals for heightened governmental regulation over financial
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The decision to purchase a home is one of the most important decisions a person can make. A person should think about the decision and analyze every aspect that comes along with it, prior to the medium of exchange. The economy should be a major thought in the decision making process. The economy is not in the best shape, so to know if the decision to purchase a home is the right one a person must analyze his or her situation and a weigh his or her options. In addition, a home comes with some
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02. ECONOMIC SYSTEMS – DEFINITIONS AND CHARACTERISTICS - CAPITAL ECONOMY – SOCIALIST ECONOMY – MIXED ECONOMY C. ECONOMIC SYSTEMS i) Circular Flow of Goods and Money in an Economic System Every economy is a system in which the production of many goods is organized to satisfy many wants of human beings. In an economic system, the two economic units namely households and enterprises are linked by a circular pattern of economic activities as illustrated in Figure 1.1.The choices and decisions of these
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ACCEPTED ACCOUNTING PRINCIPLES (GAAP) In order to measure, process and communicate financial information, accountants follow rules, principles and standards. These rules, principles and standards are set by International Accounting Standards Board (IASB) Australian Accounting Standards Board (AASB) Financial Reporting Council (FRC) Australian Securities & Investment Commission (ASIC) 12 4 8/13/2014 SOME PRINCIPLES AND ASSUMPTIONS Time period •Economic information can
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Does the capitalist free enterprise system improve justice in society? In what way does it do so? In what ways does it not? Explain and defend your overall conclusion? “Capitalism can be defined ideally as an economic system in which the major portion of production and distribution is in private hands, operating under what is termed a profit or market system (Shaw, Barry, & Sansbury, 2009, p.127).” Over the many centuries, capitalism has evolved from the emergence of capitalism during fifteenth
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