School of Distance Education Financial Accounting 2 UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION CORE COURSE B.Com/BBA II SEMETER FINANCIAL ACCOUNTING Prepared by: Udaya Kumar.O.K. Click the PDF, Kindle or ePUB icon. This free eBook explains all of the basic accounting concepts and terminology you will need to. It was later that I saw that Free Management eBooks had several more eBooks on finance. Basic Accounting Principles - Accounting. Tools. A number of basic accounting principles have been developed through common usage. They form the basis upon which modern accounting is based. The best- known of these principles are as follows: Accrual principle. This is the concept that accounting transactions should be recorded in the accounting periods when they actually occur, rather than in the periods when there are cash flows associated with them. This is the foundation of the accrual basis of accounting. It is important for the construction of financial statements that show what actually happened in an accounting period, rather than being artificially delayed or accelerated by the associated cash flows. For example, if you ignored the accrual principle, you would record an expense only when you paid for it, which might incorporate a lengthy delay caused by the payment terms for the associated supplier invoice. Conservatism principle. This is the concept that you should record expenses and liabilities as soon as possible, but to record revenues and assets only when you are sure that they will occur. This introduces a conservative slant to the financial statements that may yield lower reported profits, since revenue and asset recognition may be delayed for some time. Conversely, this principle tends to encourage the recordation of losses earlier, rather than later. This concept can be taken too far, where a business persistently misstates its results to be worse than is realistically the case. Consistency principle. This is the concept that, once you adopt an accounting principle or method, you should continue to use it until a demonstrably better principle or method comes along. Not following the consistency principle means that a business could continually jump between different accounting treatments of its transactions that makes its long- term financial results extremely difficult to discern.
Cost principle. This is the concept that a business should only record its assets, liabilities, and equity investments at their original purchase costs. This principle is becoming less valid, as a host of accounting standards are heading in the direction of adjusting assets and liabilities to their fair values. Economic entity principle. This is the concept that the transactions of a business should be kept separate from those of its owners and other businesses. This prevents intermingling of assets and liabilities among multiple entities, which can cause considerable difficulties when the financial statements of a fledgling business are first audited. Full disclosure principle. This is the concept that you should include in or alongside the financial statements of a business all of the information that may impact a reader's understanding of those financial statements. The accounting standards have greatly amplified upon this concept in specifying an enormous number of informational disclosures. Going concern principle. This is the concept that a business will remain in operation for the foreseeable future. This means that you would be justified in deferring the recognition of some expenses, such as depreciation, until later periods. Otherwise, you would have to recognize all expenses at once and not defer any of them. Matching principle. This is the concept that, when you record revenue, you should record all related expenses at the same time. Thus, you charge inventory to the cost of goods sold at the same time that you record revenue from the sale of those inventory items. This is a cornerstone of the accrual basis of accounting. The cash basis of accounting does not use the matching the principle. Materiality principle. This is the concept that you should record a transaction in the accounting records if not doing so might have altered the decision making process of someone reading the company's financial statements. This is quite a vague concept that is difficult to quantify, which has led some of the more picayune controllers to record even the smallest transactions. Monetary unit principle. This is the concept that a business should only record transactions that can be stated in terms of a unit of currency. Thus, it is easy enough to record the purchase of a fixed asset, since it was bought for a specific price, whereas the value of the quality control system of a business is not recorded. This concept keeps a business from engaging in an excessive level of estimation in deriving the value of its assets and liabilities. Reliability principle. This is the concept that only those transactions that can be proven should be recorded. For example, a supplier invoice is solid evidence that an expense has been recorded. This concept is of prime interest to auditors, who are constantly in search of the evidence supporting transactions. Revenue recognition principle. This is the concept that you should only recognize revenue when the business has substantially completed the earnings process. So many people have skirted around the fringes of this concept to commit reporting fraud that a variety of standard- setting bodies have developed a massive amount of information about what constitutes proper revenue recognition. Time period principle. This is the concept that a business should report the results of its operations over a standard period of time. This may qualify as the most glaringly obvious of all accounting principles, but is intended to create a standard set of comparable periods, which is useful for trend analysis. These principles are incorporated into a number of accounting frameworks, from which accounting standards govern the treatment and reporting of business transactions. Related Topics. What are accounting principles? What is a going concern qualification? What is the prudence concept in accounting?
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An optical fiber (or optical fibre) is a flexible, transparent fiber made by drawing glass or plastic to a diameter slightly thicker than that of a human hair. Typical communications fiber uses a circular preform. Optical fiber communications typically operate in a. The Fiber Optic Association, Inc. CATV also uses singlemode fibers with systems that are either hybrid fiber-coax. Wavelength demultiplexer in multimode fiber that uses optimized holographic optical elements Yukihiro Ishii and Toshihiro Kubota. This is an important property that eliminates signal crosstalk between fibers within. In telecommunications. Fibers. are generally used in pairs, with one fiber of the pair carrying a signal in each. Fibers. like waveguides, can have various. The. fibers used for long- distance communication are known as single mode fibers. This results in superior performance. Typical single mode fibers can sustain transmission distances. Note that single mode. Field Guide to Optical Fiber Technology. Author(s): Rudiger Paschotta. DOI: 10.1117/3.853722. Principle of Waveguiding. Wave Propagation in Fibers.Fibers used in. telecommunications typically have a diameter of 1. The transmission core. The refractive index,n. Because. of the remarkably low loss and excellent linearity and dispersion. Wavelength. division multiplexing can then be used to allow many wavelengths to be used. The. fiber transmission loss is minimal for 1. Modern. fiber cables can contain up to a thousand fibers in a single cable, so the performance. However, unused point- to- point potential bandwidth does. Modern. cables come in a wide variety of sheathings and armor, designed for applications. In recent. years the cost of small fiber- count pole mounted cables has greatly decreased. Japanese and South Korean demand for Fiber to the Home (FTTH). Recent. advances in fiber technology have reduced losses so far that no amplification. This. has greatly reduced the cost of optical networking, particularly over undersea. In the past few years several manufacturers. Longer- range. systems still have to use optical amplifiers. Refracted. diagram which illustrates the propogation of light through an optical fiber. In. an optical fiber, a refracted ray is one that is refracted from the core. Specifically. a ray having direction such that where r is the radial distance from the. Refracted. rays correspond to radiation modes in the terminology. For. the fiber to guide the optical signal, the refractive index of the. In different types. Especially in single- mode fibers, a significant fraction of. Source. from Federal Standard 1. CFollowing. are the two major types of fiber- optic cable: Single- mode. The cable's core diameter is 8 to 1. The cable's core is larger than. Multimode fiber is the type usually specified for LANs and WANs. Advantages. of optical fibers over wires. Lower. cost in the long run Low. B/km), so repeater- less transmission. Large. data- carrying capacity (thousands of times greater, reaching speeds of up to 1. Tb/s in field deployed systems and up to 1. Tb/s in lab systems) Immunity. No. electromagnetic radiation; difficult to eavesdrop High. Low weight. Signals contain. No. crosstalk between cables No. Cannot. carry electrical power to operate terminal. However, current telecommunication trends greatly reduce this concern. PDAs; the. routine inclusion of back- up batteries in communication devices; lack of real. Almost. all these disadvantages have been surmounted or bypassed in contemporary telecommunications. Their. cost is much more economic than old coaxial cables because the transmitters and. The cost of regeneration in electrical long distance. History. Charles Kao's 1. Ph. D thesis. estimated that glass fibers need to have an optic signal attenuation of less than 2. The first useful optical. Maurer, Keck. 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