ACCOUNTING

Accounting



Question 1

Discuss the purpose underlying the issue of UK accounting standards.

In most cases, the accounting issues occur when there is misappropriation of funds or when the funds used cannot be accounted for. All this breaks down to the ethical issues in accounting. Accounting issues can be a nightmare to the management of any company, and they have to be dealt with in a professional manner. While you may not be able to understand all the accounting issues, you should have basic accounting knowledge so you can have a general idea of the issues. If you are not sure about your entries, you can hire the services of an independent accountant to verify your accounts.

You should be consistent with your entries. Ensure that you stick to one accounting method. Also consider accounting issues in different organizations. The accounting issues keep changing from one year to the next. For example, the IAS may change in one particular year.Most of the accounting issues arise from fraudulent deals that involve the accountants or unethical practices. Other issues can occur due to a change in international financial reporting standards.Identify and describe the four main accounting concepts.

Accruals Concept

The particular accruals notion says in which income from transactions as well as purchases that cause debts tend to be taken into account when they occur, even when cash or even property has not yet actually recently been traded involving the agencies mixed up in purchase. For example, the dentist and Doctor, Payne orders as well as will get 6 several weeks price of mouthwash for $500 in January. Even when he does not purchase the toothpaste till February, Doctor. Payne must nevertheless record the $500 responsibility in Jan rather than delay until Feb ., because he or she is the owner of the goods and it is prone to purchase these phones the particular dealer. Upon it's change the provider will be accounting for that selling of toothpaste to be able to Doctor. Payne.

Regularity Concept

As soon as certain accounting approach continues to be utilized through the accountant, this kind of techniques has to be utilized through all of the more periods for your accounting purposes. The particular accounting approach ought to just be changed if you have a legitimate reason why requires the modification. As an example, when the accountancy firm starts saving transactions using the double-entry accounting approach within the month of January, they should carry on implementing the particular double-entry method for most of the particular accounting period of time. She or he should not begin applying the actual double-entry approach and abruptly switch to the actual single-entry accounting method mid-accounting cycle with regard to simply no familiar, valid reason. This means that every one of the accounting techniques as well as procedures should be utilized regularly to make sure assessment of data between durations.

Going Problem Notion

When the accounting of your customers are becoming maintained, it ought to be assumed through the accountancy firm that the business is practical and will nevertheless functional in the ...