Accounting·Basic accounting systems · NSSCO 4.1
The accounting principles
Narrated lesson · press play
These are the rules of the road for accounting. We'll meet all eleven accounting principles — historic cost, money measurement, business entity, dual aspect, realisation, going concern, consistency, prudence, accrual/matching, substance over form and materiality — each with a plain-language meaning and a short N$ example. Then we'll learn a skill examiners love: telling capital apart from revenue, both for expenditure (spending) and receipts (money in), and why classifying it correctly keeps the profit and the Statement of Financial Position true.
What you'll learn in this lesson
By the end you should be able to (NSSCO Accounting 4.1):
- Identify the accounting principles (historical cost, money measurement, business entity, dual aspect, realisation, going-concern, consistency, prudence, accrual/matching, substance over form, materiality)
- Explain each of the accounting principles
- Illustrate each of the accounting principles
- Explain the difference between capital and revenue receipts, capital and revenue expenditure
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