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What is the accounting device that is used to store the recorded monetary information from the entity's transaction and events?
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What is monetary convention?
Monetary convention is the convention that specifies that: All transactions must be recorded in money terms, and all transactions must be recorded in the currency of the country where the transaction was performed.
Is accounting the language of business?
Yes, because all business transaction are recorded using accounting that's why it is called language of business.
Filled Customer Orders Collected transaction are recorded into the accounting system using what balance identifier?
The answer is R
What is monetary unit principle as it relates to Accounting?
The Monetary unit principle states that all items must be recorded and reported in monetary terms, i.e. in the currency of the country of location where reports are being prepared and ultimately used.
What is the difference between cash-based and accrual-based accounting?
under cash base system of accounting/book keeping transaction is recorded in the books of accounts when actually cash received or paid relevant to the transaction, whereas, in accrual Base system of accounting there is not any compulsion to actually receive or pay cash before recording the transaction in the books of accounts but only evidence of an event is needed to record it!
What is monetary convention?
Monetary convention is the convention that specifies that: All transactions must be recorded in money terms, and all transactions must be recorded in the currency of the country where the transaction was performed.
Why do debits equal credits?
In double entry accounting system any transaction should be equal for both debit as well as credit side to be recorded otherwise no business transaction can be recorded. This assures the basic accounting equation as well.
What is recorded facts which effects nature of financial statements?
in accounting all facts are not recorded only those facts or transactions are recorded which can be represented in terms of money and which can not be recorded fall beyond the scope of accounting thus in accounting the recorded facts are those which can be presented in monetary terms.
Is accounting the language of business?
Yes, because all business transaction are recorded using accounting that's why it is called language of business.
Filled Customer Orders Collected transaction are recorded into the accounting system using what balance identifier?
The answer is R
What is monetary unit assumption?
"The monetary unit assumption requires that companies include in the accounting records only transactions data that can be expressed in terms of money. This assumption enables accounting to quantify (measure) economic events. The monetary unit assumption is vital to applying the cost principle. This assumption prevents the inclusion of some relevant information in the accounting records. For example, the health of the owner, the quality of service, and the morale of employees are not included. The reason: Companies cannot quantify this information in terms of money. Though this information is important, only events that can be measured in money are recorded." Source: "Accounting Principles" Wiley. 8th edition. Weygant; Kieso; Kimmel.
What is the monetary unit assumption?
"The monetary unit assumption requires that companies include in the accounting records only transactions data that can be expressed in terms of money. This assumption enables accounting to quantify (measure) economic events. The monetary unit assumption is vital to applying the cost principle. This assumption prevents the inclusion of some relevant information in the accounting records. For example, the health of the owner, the quality of service, and the morale of employees are not included. The reason: Companies cannot quantify this information in terms of money. Though this information is important, only events that can be measured in money are recorded." Source: "Accounting Principles" Wiley. 8th edition. Weygant; Kieso; Kimmel.
What is monetary unit principle as it relates to Accounting?
The Monetary unit principle states that all items must be recorded and reported in monetary terms, i.e. in the currency of the country of location where reports are being prepared and ultimately used.
Importance of ICT in accounting profession?
The accounting transactions are recorded at a faster speed than in manual accounting systems,thus, more of information can be recorded in same time that it would have been done manually
What is the difference between cash-based and accrual-based accounting?
under cash base system of accounting/book keeping transaction is recorded in the books of accounts when actually cash received or paid relevant to the transaction, whereas, in accrual Base system of accounting there is not any compulsion to actually receive or pay cash before recording the transaction in the books of accounts but only evidence of an event is needed to record it!
What is the proper accounting entry for accrued liability?
WHICH IS PAYABLE...Under accrual method of accounting, goods or services are received today and payment is made in the future. The transaction is recorded in the books when the goods and services are receive.
What is cash basis accounting?
Cash basis accounting is the method of tracking finances at the time that cash is exchanged. So, when a customer pays you cash, you would record the transaction; when you pay for your expenses with cash, you would record the transaction. Cash basis differs from ACCRUAL BASIS accounting, which tracks the funds based on when the transaction created a debt. So, in accrual accounting, you would record a transaction when you issue an invoice (requiring payment) because ACCRUAL accounting recognises this invoice as an asset, even though it has not yet been realised. Similarly, when you receive a bill from a client or utility, that bill (in accrual accounting) is recorded as a debt, even though it has not yet been paid. So CASH ACCOUNTING and ACCRUAL ACCOUNTING differ in the TIMING of the record of when the transaction is paid - at time of exchange of cash/funds or at time of notice of requirement to pay. - Xavier
