what are the important points from chapter theory base of accounting.
Answers
Answered by
8
⭐️<============================>⭐️
✯SOME IMPORTANT POINTS ARE :
⏹Revenue Recognition : Revenue is the gross in-flow of cash arising from the sale of goods and services by an enterprise and use by others of the enterprise resources yielding interest royalities and divididends. The concept of revenue recognition requires that the revenue for a business transaction should be considered realised when a legal right to receive it arises.
⏹Matching : The concept of matching emphasises that expenses incurred in an accounting period should be matched with revenues during that period. it follows from this that the revenue and expenses incurred to earn these revenue must belong to the same accounting period.
⏹full Disclosure : This concept requires that all material and relevant facts concerning financial performance of an enterprise must be fully and completely disclosed in the iinancial statements and their accompanying footnotes.
⏹Consistency : This concepts states that accounting policies and practices followed by enterprises should be uniform and consistent one the period of time so that results are composable. Comparability results when the same accounting principles are consistently being applied by different enterprises for the period under comparison, or the same firm for a number of periods. Conservatism : This concept requires that business transactions should be recorded in such a manner that profits are not overstated. All anticipated losses should be accounted for but all unrealised gains should be ignored. Materiality : This concept states that accounting should focus on material facts. If the item is likely to influence the decision of a reasonably prudent investor or creditor, it should be regarded as material, and shown in the financial statements.
⏹Objectivity : According to this concept, accounting transactions should be recorded in the manner so that it is free from the bias of accountants and others.
⏹Systems of Accounting : There are 'two systems of recording business transactions. viz. double entry system and single entry system. Under double entry system every transaction has two-foid effects where as single entry system is known as incomplete records.
⏹Basis of Accounting : The two broad approach of accounting are cash basis and accrual basis. Under cash basis transactions are recorded only when cash are received or paid. Whereas under accrual basis, revenues or costs are recognises when they occur rather than when they are paid.
⏹Accounting Standards : Accounting standards are written statements of uniform accounting rules and guidelines in practice for preparing the uniform and consistent financial statements. These standards cannot over ride the provisions of applicable laws, customs, usages and business environment in the country.
☺
✌✌✌
pirshua:
thanks a lot bro
ur wlcm dear✌✌
nice answer
:) ty
my pleasure
any sort of plagiarism? @jkhan1
what?
what is plagiarism?
Answered by
0
heya....
Here is your answer...
Important points :
⏹Revenue Recognition : Revenue is the gross in-flow of cash arising from the sale of goods and services by an enterprise and use by others of the enterprise resources yielding interest royalities and divididends. The concept of revenue recognition requires that the revenue for a business transaction should be considered realised when a legal right to receive it arises.
⏹Matching : The concept of matching emphasises that expenses incurred in an accounting period should be matched with revenues during that period. it follows from this that the revenue and expenses incurred to earn these revenue must belong to the same accounting period.
⏹Basis of Accounting : The two broad approach of accounting are cash basis and accrual basis. Under cash basis transactions are recorded only when cash are received or paid. Whereas under accrual basis, revenues or costs are recognises when they occur rather than when they are paid.
⏹Accounting Standards : Accounting standards are written statements of uniform accounting rules and guidelines in practice for preparing the uniform and consistent financial statements. These standards cannot over ride the provisions of applicable laws, customs, usages and business environment in the country.
It may help you...☺☺
Here is your answer...
Important points :
⏹Revenue Recognition : Revenue is the gross in-flow of cash arising from the sale of goods and services by an enterprise and use by others of the enterprise resources yielding interest royalities and divididends. The concept of revenue recognition requires that the revenue for a business transaction should be considered realised when a legal right to receive it arises.
⏹Matching : The concept of matching emphasises that expenses incurred in an accounting period should be matched with revenues during that period. it follows from this that the revenue and expenses incurred to earn these revenue must belong to the same accounting period.
⏹Basis of Accounting : The two broad approach of accounting are cash basis and accrual basis. Under cash basis transactions are recorded only when cash are received or paid. Whereas under accrual basis, revenues or costs are recognises when they occur rather than when they are paid.
⏹Accounting Standards : Accounting standards are written statements of uniform accounting rules and guidelines in practice for preparing the uniform and consistent financial statements. These standards cannot over ride the provisions of applicable laws, customs, usages and business environment in the country.
It may help you...☺☺
Similar questions