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Accounting for Non-Accounting Students by John R. Dyson

By John R. Dyson

Accounting for Non-Accounting scholars is a hugely reputed textual content for is accessibility and readability. The e-book combines ordinary language and actual global examples making it perfect for college kids with very little earlier wisdom of monetary or administration accounting. The textual content covers the necessities of book-keeping and the foundations of accounting in a non-technical sort and teaches scholars the perfect questions that every one non-accountants should still ask who are looking to excel of their stories and profession.

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Qualitative, quantitative or both? Who wants it? Owners? Workers? Customers? Are their wants the same? What is meant by an entity? Where do you draw the line? How do you report the information that you are going to provide? g. six cows and a hundred sheep? Or do you use a common measure such as translating everything into monetary values? 5 Do you report on a regular basis? And over what period? Every week or every five years? CHAPTER 2 ACCOUNTING RULES AND REGULATIONS 25 It is in response to such questions that over the centuries common procedures have evolved.

In which year would you consider that the £100,000 has been ‘realized’? 4. This rule is closely related to the realization rule. Accounts are not usually prepared on the basis of cash received and cash paid during (say) a 12-month period because there is often a delay between the receipt and the payment of cash depending on the credit period given. 4 The matching rule CHAPTER 2 ACCOUNTING RULES AND REGULATIONS 29 be misleading when one year is compared with another. e. opening and closing debtors and creditors.

Measurement rules Measurement rules determine how data should be recorded. There are six important ones. They are: money measurement, historic cost, realization, matching, dual aspect and materiality. First, the money measurement rule. Money measurement Such information that can be easily quantified is given a monetary value. But the value of money changes over a period of time. e. the same quantity of money buys fewer goods and services than the year before. Deflationary periods can also occur but they are quite rare and they are usually quite short.

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