The matching principle entails that the earned income and related expenses must be accounted for in the same accounting period. If the income and expenses don’t correlate, the costs must be charged to expenses. The concept of the matching principle highlights the necessity of recording the cause...
Focuses on the financial statements of Enron Corporation. Unreliability of the company's financial statements; How portions of Enron's accounting practices violated elementary accounting principles; Enron's agreement to be bought by rival Dynegy; Financial background; Comparisons with the erroneous ...
The underlying principle there is that the earning power and not the cost is the basis for valuing a continuing business. The business is to continue indefinitely and the financial and accounting policies are followed to maintain the continuity of the business unit. 2. Consistency: There should ...
Revenue Recognition Principle –In accrual basis accounting, revenue or income is recognized when earned regardless of when received. It means that income is recorded when the service is fully performed or when sale occurs, even if the amount is not yet collected. Expense Recognition Principle –Al...
Objectivity Principle –financial statements, accounting records, and financial information as a whole should be independent and free from bias. The financial statements are meant to convey the financial position of the company and not to persuade end users to take certain actions....
By: Short-term Loans - Yaguang group company loan households 100000 Credit: unit deposit account - Yaguang group company deposit 100000 Summarize the practical application of debit accounting: How does an economic transaction manifest itself?. From small to large to reflect. One principle is that ...
aInternational accounting standard is the basic principle of the guide. 国际会计标准是指南的基本原则。 [translate] a赶上这个趋势 Catches up with this tendency [translate] a国际会计准则基本是原则导向的。 International accountant the criterion basic is the principle guidance. [translate] ...
Describe the Accrual Basis of Accounting, and Compare it with the Cash Basis. What is the accounting principle or concept upon which deferrals and accruals are based? Explain the difference between cash accounting and accrual accounting. Define the accrual basis of accounting. Why is it gener...
基本会计假设 Basic Accounting Assumptions BasicAccountingAssumptions Thebasicaccountingassumptionsrefersto thereasonabletheoriesonaccountingrangeof timeandspace,aswellasstandardsof measurement.Thedeterminationofaccounting object,thechoiceofaccountingpoliciesand methodsareallbasedonbasicaccounting assumptions.2 Inourcountry,...
This principle advises using debt judiciously and understanding its implications. It’s important to have a plan for repaying debt and not accumulating it unnecessarily. Example: Taking out a mortgage for a home can be a productive use of debt, as it helps build equity. However, accumulating ...