Assumption of Accounting

Assumption of Accounting

Project Type: Presentation (ppt)

Downloads: 0 - 10 Thursday 16th March 2017 Report

Assumption of Accounting - Overview

------------ PAGE 1 ------------ Welcome To Our Presentation Group Member Md. Hafisur Rahman ID: 141- 23- 136 Sayma Atiq Shammi ID: 141- 23- 138 MD. Jahangir Alam ID: 152- 10- 116 ------------ PAGE 2 ------------ Prepared by Md. Hafisur Rahman Daffodil International University Assumption of Accounting ------------ PAGE 3 ------------ What is Accounting • Accounting is an information system that identifies, records, communicates the economic activities of an organization to the interested users. ------------ PAGE 4 ------------ Three Activities What is Accounting? ------------ PAGE 5 ------------ Assumption Assumptions are agreed upon rules of accounting, and are basic, understood beliefs. • There are four basic assumption of acounting ------------ PAGE 6 ------------ acounting ------------ PAGE 7 ------------ acounting ------------ PAGE 8 ------------ „« Example: „« Employee satisfaction and percent of international employees are not transactions that should be included in the financial records. Customer Satisfaction Percentage of International Employees Salaries paid Should be included in accounting records ------------ PAGE 9 ------------ • All of the business transactions should be separate from the business owner’s personal transactions • There should be no co- mingling of personal funds with business funds. Economic Entity Assumption ------------ PAGE 10 ------------ Example • Purchased a machine of $ 10000 should be record. • Should be kept separate from the owner transaction. ------------ PAGE 11 ------------ Time period Assumption • A company should record its activity on timely basis. • Such as monthly, weekly , quarterly , half- yearly and annually. QTR 1 QTR 2 QTR 3 QTR 4 2005 2006 2007 JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC ------------ PAGE 12 ------------ DEC ------------ PAGE 13 ------------ Going Concern Assumption • An organization should continue its operation until it achieves its existing objectives. • After the operation of first month it may face loss. • Organization should try to find out the reasons of failure and solve the problems. • The organization may overcome the loss position and may enjoy profit. ------------ PAGE 14 ------------ profit. ------------ PAGE 15 ------------ profit. ------------ PAGE 16 ------------ Thanks . To . All . ------------ PAGE 17 ------------ .
Back to top of page