Accounting concepts revision

"The entity will continue offering their services for the foreseeable future.  The owner has no intention or need to stop operating the entity."

• Entity concept

• Going concern concept

• Historical cost concept

• Monetary measurement concept

"Only assets, liabilities, incomes and expenses of the entity, are included in the financial statements. Personal transactions are not included."

• Going concern concept

• Entity concept

• Historical cost concept

• Period reporting concept

"The continuing life of the entity is divided into equal time periods (years)."

• Entity concept

• Period reporting concept

• Historical cost concept

• Monetary measurement concept

"The equipment is recorded at their original purchase cost of $X. This cost is reported in the Property, plant and equipment note to the Balance Sheet."

• Going concern concept

• Entity concept

• Historical cost concept

• Period reporting concept

 "All financial elements are reported in the same unit of currency (e.g. NZD) so that all the dollars added together in the accounting records are in the same currency."

• Entity concept

• Period reporting concept

• Historical cost concept

• Monetary measurement concept

Wages owing on balance day is...

• Accrued expense

• Accrued income

• Prepayment

• Income in advance

Interest on loan owing on balance day is...

• Accrued expense

• Accrued income

• Prepayment

• Income in advance

Dividends received owing to the entity on balance day is...

• Accrued expense

• Accrued income

• Prepayment

• Income in advance

Interest received owing to the entity on balance day is...

• Accrued expense

• Accrued income

• Prepayment

• Income in advance

Rent paid in advance by the entity on balance day is...

• Accrued expense

• Accrued income

• Prepayment

• Income in advance