conservation Prudence concept: revenue and profits are included in the balance sheet only when they are realized(or there is reasonable 'certainty ' of realizing them) butliabilities are included when there is a reasonable 'possibility ' of incurring them. Also called conservation concept. Du Pont analysis A type of analysis that examines a company 's Return on Equity (ROE) by breaking it into three main components:profit margin, asset turnover and leverage factor. By breaking the ROE into
Essay The acts of accounting and finance date back to the beginnings of recorded history and has evolved over the centuries to become a cornerstone of societies across the globe. Both the Old and New Testament of the Bible discuss the subject of accounting and finance in many scriptures and parables. The biblical concepts taught about accounting and finance are, without fail, applicable to modern business. Without an ethical foundation build upon a biblical foundation accounting and finance practices
ACCOUNTING CONCEPT AND CONVENTIONS In drawing up accounting statements, whether they are external "financial accounts" or internally-focused "management accounts", a clear objective has to be that the accounts fairly reflect the true "substance" of the business and the results of its operation. The theory of accounting has, therefore, developed the concept of a "true and fair view". The true and fair view is applied in ensuring and assessing whether accounts do indeed portray accurately the business
D Solomons, The Political Implications of Accounting and Accounting Standard Setting, Accounting and Business Research, 1983 COPYRIGHT WARNING NOTICE This course reading may be used only the for the University’s educational purposes. It may be a copyright work, or an extract of a copyright work, copied under copyright licences. You may not copy or distribute any part of this course reading to any other person. Where this course reading is provided to you in electronic format you may print from
The Entity Concept in accounting states transactions associated with one business or entity must be separate from additional businesses owned by the same person. This requires separate books, accounts, assets, liabilities and anything separately associated with each business. This concept is imperative as it is required by federal law and GAAP principals. B. Reliability Principal The reliability principle is the concept of only recording those transactions in the accounting system that you can verify
Principles and Concepts of Accounting Name Institution Introduction The major accounting principles that guide accounting practices are endorsed on the Generally Accepted Accounting Principles (GAAP). This is an international guidelines that all the companies and organizations are expected to apply in their operations. These principles are further classified into assumption and constraints. The assumption principles include business entity, going concern, monetary unit and time period
This essay begins by discussing the competition between Nike and one of its rivals. This essay will focus on Puma as they are Nike’s rival. Moreover, it will analyse and discuss Nike’s marketing practises with Puma; these two companies will be compared and will be supported by examples and references that will be shown throughout the essay. To begin with, Nike is the world’s largest sports brand while Puma is currently the third largest sports company after Adidas in the sports industry. (Heydt
Green Accounting: Concepts and Practices Research Paper Responsibility towards environment has become one of the most crucial areas of social responsibility. With the concept of sustainable development catching on rapidly, corporate and industrial houses across the world are increasingly incorporating the environmental element in their day-to-day business operations. They are clear in their perception that along with quality, safety of the environment too, is an important factor in making a business
of management accounting and how it has lost relevance today. In the world of technology, competitive environment many issues have escalated, therefore management accounting methods aren’t relevant. Management accounting systems used by the firms before do not apply to organisations today. Hence the reason why the two academics explored reasons why organisations need to develop the methods in which they measure their performance and costs. This essay will explore the implications of management
Other Accounting Implications for Bitcoin Bitcoin is a digital currency, but it is not issued by any central banks. There is no general accepted regulatory rule to guide market participants concerning how they should treat Bitcoin. Governments in different countries have inconsistent and changing attitudes towards cryptocurrency. For example, by the end of 2013, Chinese central bank announced that the Bitcoin was not treated as currency and the central bank prohibited financial institutions from