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A2 OCR accountancy

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A2 OCR accountancy

DNA_11

anyone know the basic principles of contract accounting? am kind of lost in this :s

Reply 1

samanthaaaa

DNA_11

anyone know the basic principles of contract accounting? am kind of lost in this :s

Businesses are required to produce annual accounts. Contracts may last longer than one year and until it is completed, actual profit and loss accounts cannot be completed which would be too long for shareholders etc.

Therefore businesses must try to calculate profits earned to date at the end of each year by producing contract accounts.

This website may be more useful: http://www.accaglobal.com/archive/sa_oldarticles/12667

Hope this helps :smile:

Reply 2

DNA_11

thanx! got it ^_^

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