Please enable JavaScript.
Coggle requires JavaScript to display documents.
ACCOUNTING CONCEPTS ((A business’ financial information is recorded and…
ACCOUNTING CONCEPTS
A business’ financial information is recorded and reported separately from the owner’s personal financial information
-
-
Financial statements are prepared with the expectation that a business will remain in operation indefinitely
All accounting records and statements are prepared, as though the business will continue even after the present owner is gone
Changes in financial information are reported for a specific period of time in the form of financial statements
-
-
-
-
-
-
-
Adequate Disclosure
Financial statements should contain all information necessary for a reader to understand a business’ financial condition
Consistent Reporting
In the preparation of financial statements, the same accounting concepts are applied in the same way in each accounting period
Prudence
Revenues and profits are only included in the accounts when they are realized or their realization is reasonably certain
-
-
-
-
-