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12 Cards in this Set
- Front
- Back
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Financial Accounting |
A means of communicating financial information to parties that have an interest in the entity. It caters to external users of financial information |
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Managerial Accounting |
A means of reporting activities occurring within the entity and caters for internal users |
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Entity |
An entity is an economic unit that operates separately from other units and has separate financial statement |
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Statement of profit or loss and other comprehensive income |
A statement that reports the financial performance of the entity ito income and expenses and the resulting profit or loss for a certain period |
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Statement of financial position |
A statement that reports on the financial position of an entity |
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Statement of cash flows |
Reports on the inflow and outflow of cash in the entity and what that cash was used for |
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Accrual concept |
States that financial transactions are recorded when they occur, not when cash is received or paid |
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Going concern concept |
States that the it is assumed that the entity will continue to operate into the foreseeable future |
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Asset |
Is a resource under the control of the entity that resulted from a past event and is expected to lead to the inflow of economic benefit |
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Asset recognition criteria |
1. There must be a probability of future inflow of economic benefit 2. The value of the asset must be measured reliably |
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Liability |
Is a current obligation resulting from a past event of which the payment thereof is expected to lead to an outflow of economic benefit |
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Liability recognition criteria |
1. Probability of an outflow of economic benefit 2. The value of the liability must be measure reliably |
