Principles And Concepts Of Accounting - 2338 Words

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 assumption principles (Hendrick, 2011). Other principles listed in the GAAP include historical cost, revenue recognition principle, and matching, and full disclose principles. On the other hand, constraints are also divided into objectivity principle, materiality principle, consistency principle, and conservatism principle (Weygandt J. J., 2012). Disney Company adhered to these concepts while preparing its financial reports to present fair information to the users is recommended in the International Financial Reporting Standards. This research work dwells on the analysis of the various principles and constraints with regards to Walt Disney Company. Accounting Period Concept Accounting period concept requires that all transactions must be of regular period or interval upon which the accounting records are to be assessed. Usually the intervals range between quarterly, semi-annually and annually reporting periods. An accounting period lasting twelve months is normally referredShow MoreRelatedManagerial accounting concepts and principles1035 Words   |  5 Pagesï » ¿Chapter 16 Managerial accounting concepts and principles 1) Direct costs are identified with and can be traced to a cost object. 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Without these concepts, theRead MoreGaap Assignment-Chapter 1†¦. 1.Business Entity Concept-.927 Words   |  4 PagesGAAP ASSIGNMENT-Chapter 1†¦ 1. Business Entity Concept- The Business Entity concept describes that deals and transactions related to a profession must be discrete from its business men(owners) and other business. For this, it requires that the data of the particular organisation and company must exclude the assets of other owners. The business entity is therefore considered to be distinct from its owners for the purpose of accounting. EXP. The owner of a business OR vocation loans $200,000 to hisRead MoreAccounting Analysis On Financial Accounting1185 Words   |  5 PagesAccounting has many branches that it can be divided into. It can be divided into several areas of activities. Accountings main branches are financial accounting, Management accounting, Cost accounting, Auditing, Tax accounting, Accounting systems, Fiduciary accounting and Forensic accounting. 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Basic Accounting Concepts and Business Structures Basic accounting concepts and business structures are important to a business’sRead MoreNur 571 Generally Accepted Accounting Principles1017 Words   |  5 PagesGenerally Accepted Accounting Principles Amy Santus RN BSN HCS/571 October 3, 2011 Debra Vaughn Increasing pressures of cutting costs and improving the quality of care in health care services influences the management of the health care organization to implement the generally accepted accounting principles (GAAP) within their daily routines. Generally accepted accounting principles (GAAP) are a set of uniform accounting guidelines health care organizations followRead MoreDefinition And Example Of Principles Based Accounting1317 Words   |  6 PagesDefinition and Example of Principles-based Accounting There are more than one way that can be utilized to define principles-based accounting. Generally, principles-based accounting delivers a general guidance on accounting implementation derived from the conceptual framework. Principles-based accounting mainly focuses on the substance of the transaction not the form of the transaction. Under a principles-based approach, accounting standards are only a general framework providing guidance to managersRead MoreGenerally Accepted Accounting Principles (G.A.A.P)1020 Words   |  5 PagesGENERALLY ACCEPTED ACCOUNTING PRINCIPLES (G.A.A.P) GAAP is an international convention of good accounting practices. It is based on the following core principles. In certain instances particular types of accountants that deviate from these principles can be held liable. The Business Entity Concept The business entity concept provides that the accounting for a business or organization be kept separate from the personal affairs of its owner, or from any other business or organization. This meansRead MoreEthical and Legal Obligations in Accounting1329 Words   |  6 PagesMarshall (2004), accounting is the process of identifying, measuring, and communicating economic information about an organization for the purpose of making decisions and informed judgements (p. 3). Specifically, financial accounting refers to the process that results in the preparation and reporting of financial statements for an entity (Marshall, McManus, Viele, p. 5). While many entities prepare their own financial statements, firms can also contract with a public accounting firm or a CertifiedRead MoreAccounting Concept and Conventions1685 Words   |  7 PagesACCOUNTING 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