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Acc0105 accounting measurement discipline

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CPT Success
CPT Success

Accounting involves measuring financial information according to established principles and standards. As a measurement discipline, accounting identifies items to measure, selects a standard monetary unit of exchange, and evaluates items according to that standard. The generally accepted valuation principles for accounting measurements include historical cost, current cost, realizable value, and present value.

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CPTSuccessRevision Notes – Fundamentals of AccountingChapter 1. Accounting an IntroductionUnit 5: Accounting as a Measurement Discipline– Valuation Principles, Accounting Estimates
Chapter 1. Accounting an IntroductionUnit 5: Accounting as a Measurement Discipline – Valuation Principles, Accounting EstimatesMoney as a measurement scale has no universal denominations as the exchange rate between the different currencies keeps on fluctuating. Money takes the shape of currency ruling in the country of measurement.
The three elements of measurement are:
Identification of objects and events to be measured

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Acc0105 accounting measurement discipline

  • 1. CPTSuccessRevision Notes – Fundamentals of AccountingChapter 1. Accounting an IntroductionUnit 5: Accounting as a Measurement Discipline– Valuation Principles, Accounting Estimates
  • 2. Chapter 1. Accounting an IntroductionUnit 5: Accounting as a Measurement Discipline – Valuation Principles, Accounting EstimatesMoney as a measurement scale has no universal denominations as the exchange rate between the different currencies keeps on fluctuating. Money takes the shape of currency ruling in the country of measurement.
  • 3. The three elements of measurement are:
  • 4. Identification of objects and events to be measured
  • 5. Selection of standard or scale to be used
  • 6. Evaluation of dimension of measurement standard or scale. ©Revision Notes - Fundamentals of AccountingCPTSuccesswww.cptsuccess.com
  • 7. Chapter 1. Accounting an IntroductionUnit 5: Accounting as a Measurement Discipline – Valuation Principles, Accounting Estimates Four generally accepted valuation principles are:
  • 8. Historical cost i.e. acquisition price
  • 11. Present value©Revision Notes - Fundamentals of AccountingCPTSuccesswww.cptsuccess.com