By Arthur Hindmarch
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Additional resources for Accounting: An Introduction
8. ,1975). 9. Accounting Standards Steering Committee, The Corporate Report (London, Accounting Standards Steering Committee, 1975). Further Reading T. Keller and S. Zeff, Financial Accounting Theory II - Issues and Controversies (New York, McGraw-Hill, 1969). P. Garner and K. B. , Houghton Mifflin, 1966). E. S. , Irwin, 1968). P. Bird, 'Standard Accounting Practice', in H. C. Edey and B. S. Yamey (eds) Debits, Credits, Finance and Profits (London, Sweet & Maxwell, 1974). 1 What do you understand by the following terminology?
8. 1974) chap. 4, and Accounting Standards Steering Committee, The Corporate Report (London, Accounting Standards Steering Committee, 1975) sect. 2. P. Bird, Accountability: Standards in Financial Reporting (London, Haymarket, 1973). For a general introduction to the nature of models see P. M. , 1969). j. C. , Charlottesville, Va, 1965) vol. I, chap. 4. D. Solomons, 'Economic and Accounting Concepts of Cost and Value', in M. , Prentice-Hall, 1966). See most introductory economics texts, for example R.
Not only does the firm now own an asset, namely the cash, but it has also established a relationship with the person from whom the cash came. The provider of the cash can be thought of as having a claim against the firm. This twofold effect on accounting data is termed 'duality'. If the cash was provided by one of the firm's owners, the owner would have a financial interest in the firm equal to the amount of cash. It is conventional to refer to this as the owners' claim or owners' equity. Although the owner now has a claim against the firm it is not normally termed a liability because of the restricted legal claims which owners have against a firm's assets.