GENERALLY ACCEPTED ACCOUNTING PRINCIPAL

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GENERALLY ACCEPTED ACCOUNTING PRINCIPAL:

GENERALLY ACCEPTED ACCOUNTING PRINCIPAL COST PRINCIPAL. OBJECTIVE PRINCIPAL. GOING CONCERN PRINCIPAL. PRINCIPAL OF FULL DISCLUSSURE. MACHING PRINCIPAL. REALIZATION PRINCIPAL. BUSINESS ENTITY PRINCIPAL. STABLE DOLLAR ASSUMPTION.

COST PRINCIPLE:

COST PRINCIPLE The historical cost basis principle is the principle that requires assets to be recorded at their cost at the time they are acquired.

OBJECTIVE PRINCIPAL:

OBJECTIVE PRINCIPAL Accounting use the term objective to desride assets valuation that are factual and can be verified by independent export.

GOING CONCERN PRINCIPAL:

GOING CONCERN PRINCIPAL It is persuaded that the business will exists for a long time and transactions are recorded from this point of view.

PRINCIPAL OF FULL DISCLUSSURE:

PRINCIPAL OF FULL DISCLUSSURE The full disclosure principle is the requirement that all information that might affect the user’s interpretation of financial statements be disclosed in the statements or in the footnotes.

MACHING PRINCIPAL:

MACHING PRINCIPAL The matching principle is the concept that revenue and costs incurred in earning that revenue should be matched in the appropriate accounting period.

REALIZATION PRINCIPAL:

REALIZATION PRINCIPAL Accounting is a historical record of transactions. It records what has happened. It does not anticipate events. This is of great important in preventing business firms from inflating their profits by recording sales and income that are likely to accrue.

BUSINESS ENTITY PRINCIPAL:

BUSINESS ENTITY PRINCIPAL The separate economic entity assumption assumes that the business is separate from its owners.

STABLE DOLLAR ASSUMPTION:

STABLE DOLLAR ASSUMPTION The cost principal and the stable.dollar assumption work very well in period of stable prices but are less satisfactory under condition of rapid inflation.

Thank You:

Thank You For Watching Prop:. Sadique shafique (KOHAT UNIVERSITY OF SCIENCE AND TECHNOLOGY)

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