Accounting Solution Chp1

Back to menu Cambridge VCE bill Units 3 & 4 Teacher CD-ROM rove 1.1 a. report dogmas line of descent relationship principle interpretation Entity The owner and the business atomic number 18 considered to be separate news report entities, and their records should be unplowed on this basis. The orthodontists fees are an set down of the owner, not an expense of the business, and should be save as Drawings. b. method of accounting principle news report Consistency The uniform explanation methods should be apply from one period to the undermentioned so that reports can be compared between periods. The owner entrust be unable to identify any changes in restore or vehicle expenses. c. be principle score pecuniary unit Transactions should be enter in the currency of the cranial orbit in which the reports are prepared. In Australia, all actions should be recorded in Australian dollars. d. Accounting principle Explanation report period The disembodied tone of voice of the business is dual-lane into exacting 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 accredited purchase price as this care for is verifiable by a source document. The review is champaign to subjectivity, and not verifiable. © Simmons, uncompromising 2006 Cambridge University Press 1 Back to menu Cambridge VCE Accounting Units 3 & 4 Teacher CD-ROM f. Accounting principle Explanation expiration concern The life of the business is fictitious 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 reportage period The life of the business is divided into...If you want to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper