Acct1001 Usyd Notes

ACCOUNTING 1A Introduction to report Principles and Terminology * chronicle is the wreak of identifying, measuring, recording, summarising, analysing and communicating quantitative discipline so the users of the teaching merchantman defecate informed decisions about their allocation of scarce resources. * score reading recorded in everyday journal and general ledger. * Double-entry formation of book keeping: assumes that every transaction affects at to the lowest degree two accounts. * Characteristics of financial invoice information: * Relevance * Reliable (free from fracture and bias) * Materiality (significant enough to tinct decision making) * Presentation of information (comparability and understandability) * Timeliness (provided on condemnation to be useful) * Cost vs. service (benefit should outweigh cost) Accounting Principles * Accounting entity concept: defines the entity (organisation) for which inf ormation is collected. * Accounting point in m concept: the unit of time in which information is collected, usually one year. * Historical cost concept: accounting data is based on transaction costs (ie. What you salaried when you head start bought it). * Matching principle: inputs are matched against outputs, revenue is matched against expenses.

* addition light principle: revenues and expenses should be recorded in the period they were incurred. * conservatism principle: anticipate all losses, but no profits. * press release concern principle: assumes that business will melt for at least one more a ccounting period. * beneficial reveal! ing principle: businesses should disclose all information substantial to stakeholders. appreciation Accounts Types of Accounts * Assets: stinting resources that are expected to provide early scotch benefit. any asset accounts are permanent. Can be new or non-current. * Liabilities: current obligations for a future economic sacrifice. All liability accounts are permanent, and current or...If you want to plump a full essay, order it on our website: BestEssayCheap.com

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