ACCOUTING ACRONYMS

BOOKS OF PRIME ENTRY

C- cash book

P- petty cash book

P- purchases journal

P- purchases returns journal

S- sales journal

S- sales returns journal

G- general journal

ACCOUNTING PRINCIPLES

B- business entity- business is treated as being completely separate from the owner of the business

C- consistency- same methods must be used from one accounting period to the next

D- duality- each transaction is recorded twice

G- going concern- assumed that the business will continue to operate for an indefinite period of time

H- historic cost - all assets and expenses are initially recorded in the ledger accounts at their actual costs

M- matching- the revenue of an accounting period much be matched against the costs of the same period

M- money measurement - only information which can be expressed in terms of money can be recorded in the accounting records

M- materiality- individual items which will not significantly affect either the profit or the assets of a business do not need to be recorded separately

P- prudence- assets must not be overstated and liabilities must not be understated

R- realisation- revenue is only regarded as being earned when the legal title of goods or services passes from the seller to the buyer