(a) Explain clearly the following accounting terms in a manner which an intelligent non-accountant could understand in...
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(a) Explain clearly the following accounting terms in a manner which an intelligent non-accountant could understand in the context of a profit-oriented organisation:
(i) Expense
(ii) Prudence
(iii) Objectivity and
(iv) Matching.
(b) Your client has received the following invoice, and has come to you for advice:
Required:
Write a letter to your client suggesting, for each of the four items in the invoice, how each item is likely to affect the expenses figure in the accounting year ended 31 December 2010. You should explain your suggestions and justify them by reference to accounting conventions.
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Related Book For
Financial Accounting An Introduction
ISBN: 9780273737650
2nd Edition
Authors: Mr Barry Elliott, Mr Augustine Benedict
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