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Accounting concepts - Coggle Diagram
Accounting concepts
Revenue recognition
Generally, revenue is recognised when it is earned and not before.
If revenue were recognised too early, a company would look more profitable than it is.
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Revenue is recorded in the period it is earned,when
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Materiality concept
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Information is significant / material if it is likely to cause a statement user to change a decision because of that information.
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Dual Aspect Concept
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double entry is the name given to the method of recording transactions under the dual aspect concept
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Matching Principle
To determine the appropriate period, accountants can either used
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