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Accruals and prudence
The accruals concept requires future income (e.g. in relation to credit sales) to be accrued. The prudence concept dictates that caution should be exercised, so that if there is doubt about the subsequent receipt, no accrual should be made.
Consistency and prudence
If circumstances change, prudence may conflict with the consistency concept, which requires the same treatment year after year.
In both situations, prudence must prevail.
What else can I help you with?
What are advantages and disadvantages of accounting concepts and conventions?
Strengths of such accounting concepts are: 1. reduce confusing variations in the methods used to prepare accounts. 2. Weakness of such accounting concepts are: 1. rigidity and low flexibility in applying the concepts. 2.
The purpose of Statements of Financial Accounting Concepts is to?
The purpose of Statements of Financial Accounting Concepts is to : A establish GAAP.
What is the difference between Accounting Postulates and Accounting Concepts?
yes
One of the accounting concepts upon which deferrals and accurals are based is?
One of the accounting concepts upon which deferrals and accruals are based i
What is the difference between accounting concepts and conventions of accounting?
bad site
What are advantages and disadvantages of accounting concepts and conventions?
Strengths of such accounting concepts are: 1. reduce confusing variations in the methods used to prepare accounts. 2. Weakness of such accounting concepts are: 1. rigidity and low flexibility in applying the concepts. 2.
What are basic accounting concepts?
The main objective of Accounting concepts is to maintain uniformity and consistency in accounting records. These concepts constitute the very basis of accounting. All the concepts have been developed over the years from experience and thus they are universally accepted rules.
What are fundamental concepts of accounting?
basic principle of accounting
The purpose of Statements of Financial Accounting Concepts is to?
The purpose of Statements of Financial Accounting Concepts is to : A establish GAAP.
What are the basic accounting concept and their implication?
basic concepts of accounting
What is the difference between Accounting Postulates and Accounting Concepts?
yes
One of the accounting concepts upon which deferrals and accurals are based is?
One of the accounting concepts upon which deferrals and accruals are based i
What is the difference between accounting concepts and conventions of accounting?
bad site
What are the basic accounting concepts and explain their implications?
what are the implications of accounting principles
Can a high school science graduate make a college do over and go into accounting?
Yes,you can switch on to accounting even you have science background. You will need to understand the basic concepts of accounting because the whole accounting is based on it`s concepts and principles,they should be learnt properly for performing accounting.
What are accounting principles?
The Accounting Principles are the assenition rules of accounting and the application of these rules, method & procedures to actual practice of accounting. These Accounting principles have been divided into a. accounting concepts b. accounting conventions.
Explain how fundamental accounting concepts are used in preparing financial statements?
explain using various example, how the major accounting concepts are used in preparing financial statement??
