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Accounting
jk
10
Accounting
12th Grade
06/17/2013

Additional Accounting Flashcards

 


 

Cards

Term
Entity Assumption
Definition
Accounting is done from the perspective of the business
Term
Monetary Assumption
Definition
Accounting is done in the "common monetary unit" eg. AU dollar
Term
Historical Cost Assumption
Definition
The value of assets (or liablities) is kept as the value of the asset at the time of purchase. eg a car with collector value might go up in price but the price in the ledger stays the same as when the car was originally prurchased
Term
Continuity Assumption
Definition
Assumption that the business will continue to operate indefinitely
Term
Period Assumption
Definition
Assumption that the accounting process is split into periods eg financial year resulting in balance day adjustments
Term
The four characteristics of information that is to be included in financial reports
Definition
-Relevance; Is it relevant to the report?
-Reliability; is it reliable information?
-Comparability; is it the industry standard?
-Understandability; is it within understanding of everyday people.
Term
Title of Income Statement
Definition
Income Statement for year ended 30 June 2008
Term
Title of Balance Sheet
Definition
Balance Sheet as at 30 June 2008
Term
Title of Trial Balance
Definition
Trial Balance as at June 30 2008
Term
Internal Accounting Controls
Definition
-Reliable personell
-Auditing/verification
-Authorisation by trusted people
-Make personnel aware of responsibilities
-Seperation of Duties; prevents fraud
-Good documentation and records
-Physical Security
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