The Realization principle or the "revenue recognition" principle. In accrual-based accounting, revenue should only be recognized when it is earned, i.e. when you sell a product or perform a service only then should you recognize or record that revenue....
Lire la suiteThe Matching Principle is a fundamental concept of accrual basis of accounting that offset revenue against expenses on the basis of their cause-and-effect relationship. It states that, in measuring net income for an accounting reccord, the costs incurred...
Lire la suite/http%3A%2F%2Fwww.google.com%2Fimages%2Fpoweredby_transparent%2Fpoweredby_000000.gif)
Custom Search The Materiality Concept Omissions or misstatements of items are material if they could, individually or collectively, influence the economic decisions of users taken on the basis of the financial statements Materiality depends on the size...
Lire la suite