11-10-2005, 08:17 PM
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i have started a accountancy course in the uk, single honours.
i have read about them but i need help understanding them, can u help please.
Increase your faith
"On the Day you shall see the believing men and the believing women - their light running forward before them and by their right hands. Glad tidings for you this Day! Gardens under which rivers flow, to dwell therein forever! Truly, this is the great success." [Soorah al-Hadeed (57)12]<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana, Tahoma, Arial" size=2 id=quote>
Going concern concept
According to this concept it is assumed that the business will exist for a long time
A firm is said to b going concern when there is neither the intention nor necessity towind up its affairs.
Or you can say that it should continue to operate at its present scale in the forseable future.keeping in view the going concern concept we show the fixed assets at a diminshing balance value and not at their market value.
Prudence concept
It is a caution approach
It ensures that uncernaties and risks inherent in business transactions should b given proper consideration.if there is possibility of loss,it should b taken into account at the earliest.on the other handa prospect of profitshould b ignored up 2 the time it doesnot materialise
This is the rule for the accountants that ,âANTICIPATE NO PROFIT BUT PROVIDE FOR ALL POSSIBLE LOSSESâ
>> Success is the ability to go from one failure to another with no loss of enthusiasm.
Edited by - sara-i on Nov 14 2005 102526 AM
i have started a accountancy course in the uk, single honours.
i have read about them but i need help understanding them, can u help please.
Increase your faith
"On the Day you shall see the believing men and the believing women - their light running forward before them and by their right hands. Glad tidings for you this Day! Gardens under which rivers flow, to dwell therein forever! Truly, this is the great success." [Soorah al-Hadeed (57)12]<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana, Tahoma, Arial" size=2 id=quote>
Going concern concept
According to this concept it is assumed that the business will exist for a long time
A firm is said to b going concern when there is neither the intention nor necessity towind up its affairs.
Or you can say that it should continue to operate at its present scale in the forseable future.keeping in view the going concern concept we show the fixed assets at a diminshing balance value and not at their market value.
Prudence concept
It is a caution approach
It ensures that uncernaties and risks inherent in business transactions should b given proper consideration.if there is possibility of loss,it should b taken into account at the earliest.on the other handa prospect of profitshould b ignored up 2 the time it doesnot materialise
This is the rule for the accountants that ,âANTICIPATE NO PROFIT BUT PROVIDE FOR ALL POSSIBLE LOSSESâ
>> Success is the ability to go from one failure to another with no loss of enthusiasm.
Edited by - sara-i on Nov 14 2005 102526 AM
