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This Concept Map, created with IHMC CmapTools, has information related to: Accounting Equation and conventions, Tangible that are Non Current Assets or Fixed Assets, The Statement of Financial Position ASSETS = LIABILITIES + [EQUITY (Balance Sheet +Income- Exspenses)] OR ASSETS - LIABILITES = [EQUITY (B. Sheet+Income - Exspense] Equation consists of Claims, Asset Needs 4 Conditions The benifit must arise from some past transaction or event, Amounts due in the short term that meet the following conditions Held Principally for trading purposes., Business Entity Convention Described as Holds that the Business and the owners are treated as being quite seperate, Asset that are Non Current Assets or Fixed Assets, Claims Consists of Liabilities, Asset Needs 4 Conditions The Business must have the right to control the resource, The Statement of Financial Position ASSETS = LIABILITIES + [EQUITY (Balance Sheet +Income- Exspenses)] OR ASSETS - LIABILITES = [EQUITY (B. Sheet+Income - Exspense] is influenced by the following Accounting Conventions Business Entity Convention, Non Current Assets or Fixed Assets Example Reference Books, The Statement of Financial Position ASSETS = LIABILITIES + [EQUITY (Balance Sheet +Income- Exspenses)] OR ASSETS - LIABILITES = [EQUITY (B. Sheet+Income - Exspense] Equation consists of Asset, Non Current Assets or Fixed Assets Example Motors, Asset Needs 4 Conditions A probable future benifit must exist, Liabilities Are classified as Non Current Liabilites, Dual Aspect Convention Described as Asserts that each transaction has two aspects, both of which will affect the statement of Financial position., Non Current Liabilites Example Long Term Borrowing, Current Liabilites Are Amounts due in the short term, Non Current Assets or Fixed Assets Example Property, Prudence Convention Described as Holds as that caution should be exercised when making accounting judgements. This means that losses should not be understated while assets ann profits should not be overstated., Equity Breaks out to Balance Sheet+Income - Exspenses