Dr martin e taylor managerial accounting and financial ac ch03 using the accrual basis of accounting learning objective 1 describe the basic accounting. Concepts as “the b road basic assumptions whic h underlies the period ic financial accounts of business enterprises” suggests and defines four concepts (instead of seve n in sas no 1. Chapter 1: an introduction to financial accounting theory accounting theoriesformed the basis of apb statement no 4 ‘basic concepts and accounting 1会计基础 1. Although accounting theory is based upon certain assumptions and the application of basic principles, there are some exceptions to these assumptions one exception is often called a constraint, and sometimes justifies departures from basic accounting theory.
Basic concepts in auditing learning objectives after reading this chapter, you will in a position to understand- large rely on professional accountants for sound financial accounting and reporting, effective independence is the keystone upon which the respect and dignity of a profession is based. One of the most basic concept of finance is the time value of money everything else is built upon it the concept is simple let me elaborate, according to the time value of money, the money which we have in hand today is worth more than the same. Rules of accounting that should be followed in preparation of all accounts and financial statements the four fundamental concepts are (1) accruals concept: revenue and expenses are recorded when they occur and not when the cash is received or paid out (2) consistency concept: once an accounting method has been chosen, that method should be used unless there is a sound reason to do otherwise. A number of basic accounting principles have been developed through common usage they form the basis upon which modern accounting is based the best-known of these principles are as follows: accrual principle this is the concept that accounting transactions should be recorded in the accounti.
Basic concepts of financial accounting end of chapter 2 basic concepts of financial accounting chapter 2 the basic accounting equation financial accounting is based upon the accounting equation assets = liabilities + owners' equity this is a mathematical equation which must balance. Concepts, conventions, postulates etc) conflict with each other, one wonders whether accounting concepts or conventions lead to users getting what they need from a set of financial statements. School of business academic year 2016 - 17 the purpose of this course is to introduce students to the concepts of financial accounting and its underlying assumptions this introductory accounting course is in-class exercises: basic concepts and techniques are illustrated using examples. Financial accounting (or financial accountancy) is the field of accounting concerned with the summary, analysis and reporting of financial transactions pertaining to a business this involves the preparation of financial statements available for public consumption.
View ch 2 (basic concepts of financial accounting)ppt from technology 21934294 at petronas technology university basic concepts of financial accounting the basic accounting equation financial. Upon successful completion of this course, you will be able to: • understand main financial statements and the financial information they provide • write a financial transaction in financial accounting language and understand how this impacts main financial statements • understand how accrual accounting and fundamental accounting concepts. Book preface financial accounting gives readers a solid foundation in the fundamentals of accounting and the basics of financial statements, and then builds upon that foundation to offer more advanced and challenging concepts and problems.
Study guide for cc2101 financial accounting contributed by: aggie chei pauline ho sherry leung barbara ngai(coordinator) helen wong basic concepts concerning the effect upon receipt and pay out of cash and basic understanding of statement of cash flow are required. Vi accounting concepts and principles chapter 1 – introduction to accounting the basic reasons for the development of accounting, and the needs of the key stakeholders, are discussed accounting standards and the concepts that underlie the preparation of both accounting standards and financial statements. 1 preface the role of the conceptual framework conceptual frameworks, in general, organize the premises and concepts that underlie corporate accounting, particularly financial accounting.
The basic accounting theories are the basis and fundamental ideas, or assumptions, underlying the practice of financial accounting these theories are a set of broad rules for all accounting activities and were developed over time by accounting professionals. Basic concepts in auditing basic concepts auditor's independence: independence is the keystone upon which the respect and dignity of a profession is based independence implies that the judgement of a person is accounting records underlying the financial statements and other information for purposes of the sas. Acct2102 intermediate financial accounting i course outline first semester, 2015/2016 in-class exercises: basic concepts and techniques are illustrated using examples students work drew upon an adequate range of academic and other materials.
The objective of the core requirement in accounting is to teach the basic concepts, standards, and practices of financial reporting, leading to the ability to read and understand published financial statements and depending on the course chosen, provide some of the rudiments of managerial accounting. The basic concepts upon which financial accounting is based terms of reference to prepare a short report, which will explain the basic concepts upon. Epa environmental accounting as a business key concepts and terms key concepts and terms united states office of pollution epa 742-r-95-001 environmental protection prevention and toxics june 1995 a key purpose of management accounting is to support a business's forward-looking management decisions, it is the focus of the. Basic accounting concepts overview of ucrec winter 2010 educational components finance basics (ie accounting and valuation) reits basic concepts of financial accounting financial accounting is based upon the accounting equation assets = liabilities + owners' equity this is a mathematical equation.