Accounting Unit 3 AOS 1 Sac 1
Accounting Process - answer Source documents, records, reports, provides advice
Transaction - answer an exchange of goods or services with another party
Stage 1: Source documents - answerPaper or electronic documents that provide both
the evidence that a transaction has occurred and the details of the transaction itself
Stage 2: Recording - answerSorting, classifying and summarising the data contained in
the source documents so that it is more useable
Stage 3: Reporting - answerthe preperation of financial statements that communicate
information to the owner
Stage 4: Advice - answerThe provision to the owners of a range of options appropriate
to their aims/objectives, together with recommendations as to the suitability of those
aims/objectives
Accounting Principles - answerGovern the way that accounting information is recorded.
CHER@MGC
Entity Principle - answerthe business is assumes to be seperate from the owner and
other businesses, and it's records should be kept on this basis
Fair Value - answerthe accepted value of a non-cash asset at the time of it's
contribution by the owner
Going Concern Principle - answerthe life of the business is assumed to be continuous,
and its records are kept on that basis
Reporting Period Principle - answerthe life of the business must be divided into periods
of time to allow reports to be prepared; these accounting reports should reflect the
Reporting period in which a transaction occurs.
Accrual Acccounting - answerCalculating profit by comparing revenues earned against
expenses incurred in a particular reporting period.
Historical Cost Principle - answerthe recording of a transaction at it's original cost or
value, as this value is verifiable by reference to the source document.
Qualitative Characteristics - answerInform the way accounting reports are prepared,
Red Rooster has Ugly Chickens
Accounting Process - answer Source documents, records, reports, provides advice
Transaction - answer an exchange of goods or services with another party
Stage 1: Source documents - answerPaper or electronic documents that provide both
the evidence that a transaction has occurred and the details of the transaction itself
Stage 2: Recording - answerSorting, classifying and summarising the data contained in
the source documents so that it is more useable
Stage 3: Reporting - answerthe preperation of financial statements that communicate
information to the owner
Stage 4: Advice - answerThe provision to the owners of a range of options appropriate
to their aims/objectives, together with recommendations as to the suitability of those
aims/objectives
Accounting Principles - answerGovern the way that accounting information is recorded.
CHER@MGC
Entity Principle - answerthe business is assumes to be seperate from the owner and
other businesses, and it's records should be kept on this basis
Fair Value - answerthe accepted value of a non-cash asset at the time of it's
contribution by the owner
Going Concern Principle - answerthe life of the business is assumed to be continuous,
and its records are kept on that basis
Reporting Period Principle - answerthe life of the business must be divided into periods
of time to allow reports to be prepared; these accounting reports should reflect the
Reporting period in which a transaction occurs.
Accrual Acccounting - answerCalculating profit by comparing revenues earned against
expenses incurred in a particular reporting period.
Historical Cost Principle - answerthe recording of a transaction at it's original cost or
value, as this value is verifiable by reference to the source document.
Qualitative Characteristics - answerInform the way accounting reports are prepared,
Red Rooster has Ugly Chickens
