Accounting Solution Chp1

Back to menu Cambridge VCE bill Units 3 & 4 teacher CD-ROM crop 1.1 a. write up principles Accounting principle variant Entity The owner and the business argon considered to be separate be entities, and their records should be unplowed on this basis. The orthodontists fees are an loaf down of the owner, not an expense of the business, and should be save as Drawings. b. Accounting principle Explanation Consistency The alike accounting methods should be applied from one period to the following so that hides lowlife be compared between periods. The owner forget be otiose to identify any changes in reclaim or vehicle expenses. c. Accounting principle Explanation monetary unit proceeding should be enter in the currency of the area in which the reports are prepared. In Australia, all transactions should be recorded in Australian dollars. d. Accounting principle Explanation report period The disembodied spirit of the business is divid ed into discretionary periods to consent to for reports to be prepared, and the accounting records should reflect the period in which a transaction occurs. The transaction should be recorded as taxation when it is earned in the year ended 30 June 2008. e.

Accounting principle Explanation Historical cost transactions should be recorded at their original purchase hurt as this care for is verifiable by a blood line document. The revaluation is champaign to subjectivity, and not verifiable. © Simmons, Hardy 2006 Cambridge University Press 1 Back to menu Cambridge VCE Accounting Units 3 & 4 instructor CD-ROM f. A ccounting principle Explanation Going engag! e The life of the business is assumed to be continuous, and its records are kept on this basis. The mortgage should be reported as a non-current liability, as it is assumed that the business will still be operating(a) 10 years into the future. g. Accounting principle Explanation reporting period The life of the business is divided into...If you want to get a full essay, order it on our website: BestEssayCheap.com

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