lecture 1 - accruals concept Flashcards

1
Q

what is the accruals concept

A

incomes and expenses are recognised (recorded) as soon as they occur not neccesarily when cash or it’s equivalent is recieved or paid

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2
Q

as long as you make sale during a period what should happen

A

it should be recorded regardless of when I recieve the cash

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3
Q

revenue and expenses are recorded regardless

A

if they’ve been paid/received yet

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4
Q

if an income statement ends on 31/12/23 what do your ecord

A

all incomes and expenses incurred or accrued during that 12 month period regardless of whether cash receipts settled or not

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5
Q

what is the profit/ loss

A

total income for the period - total expenses incurred for the period

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6
Q

income > expenses =

A

profit

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7
Q

expenses > income

A

loss

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8
Q
A
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