General Accounting Principle: This contain the accounting principle generally used in every corporation. This is based on the economic condition of country and differ from one country to another.
Cost Concept: As per this concept actual value of the assets are recorded in the books of accounts. The accountant of the company should always understand the importance of this concept as when payment of asset to the seller occur then only record the transaction.
Business Entity Assumption: The business entity concept means that the business man should record the business transaction and personal transaction separately. Each form of business organization is a separate business entity. So, the accountant will record the personal and business transaction separately.
Revenue Recognition Principle: Revenue recognition principle provide the rules and regulation that should be follow while recognizing the revenue. In accrual basis of accounting the accountant record the transaction of sales when it occur not when the payment against sale is received.
Expense Recognition Principle: As per this accounting principle the expense occur to initiate sales must be recorded in the same accounting period. If the expenses occur not directly relates to the sales period than it should be expense incurred.
Going Concern Assumption: As per this concept the life of the company is not defined. As company is artificial person and the death of company is not possible. If auditor of the company says that the future of company is dark then only the question on existence of company arises.
To identify: The accounting principle or assumption best as per the situation.
Want to see the full answer?
Check out a sample textbook solution
Chapter 1 Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
- Can you solve this general accounting question with the appropriate accounting analysis techniques?arrow_forwardOxford Electronics has assets equal to $475,000 and liabilities equal to $312,000 at year-end. What is the total equity for Oxford Electronics at year-end?arrow_forwardI am searching for the correct answer to this general accounting problem with proper accounting rules.arrow_forward
- The variable factory overhead controllable variance isarrow_forwardPlease provide the accurate answer to this general accounting problem using appropriate methods.arrow_forwardAt the beginning of the year, Beacon Retail Corp. reported cash of $42 million, and by the end of the year, it was $34 million. The company's statement of cashflows reported cash from operating activities of $95 million and cash from investing activities of -$60 million. What amount (in $ millions) did the company report for cash from financing activities?arrow_forward
- Can you solve this general accounting question with the appropriate accounting analysis techniques?arrow_forwardUnder absorption costing the fixed overhead deferred in ending inventory isarrow_forwardCan you help me solve this general accounting problem using the correct accounting process?arrow_forward
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning