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Patton and Littleton

The basic concepts are presented Patton and Littleton :

a.The business entity
In this concept, the company's business as a business organization treated
differently or legally separated 'with the owner of the business. This includes that in
business transactions must be kept 'as a whole in order to separate from the personal
affairs of an owner.
b.Continuity of activity
That if there are no signs, symptoms, or a definite plan in the future that the
business entity will be dissolved or liquidated, then accounting assume 'that the
business entity will continue indefinitely. Business continuity in the face of
uncertainty, accounting embraced this concept on the basis of reasoning that the
normal expectation or general (normal expectation) the establishment of the company
is to continue and thrive not to die or liquidation.
c. Measured consideration
That amount of rupiah / aggregate-price (price-aggregate) or award a deal
(measured consideration) involved in any transactions or activities of the exchange
(exchange activities) is an ingredient if the basis of accounting (the basic subject
matter of accounting) is the most objective, especially in measuring incoming
economic resources (income) and the economic resources that come out (charges). As
a consequence, the elements or posts set on the basis of financial reporting award such
a deal.
d. Costs attach
Costs attached to objects that are dipresentasinya until boarding is easy to move
and can be broken down or merged together the object approached again follow.
Various kos have mutually binding power between the one and the other bond
symbolize objects. When the various components are combined into an object or a
new item, a new combined boarding merely an amalgamation of various boarding
houses attached to each component without regard to the new economic value
attached to the new stuff.

e. Effort and accomplishment

That cost is an effort in order to obtain results in the form of income. In other
words, there are no results (revenue) without effort (cost). Conceptually, the income
arising from the cost of income not otherwise bear the costs.
f. Verifiable, objective evidence
That financial information will have this level of usefulness and reliability levels are
quite high if the financial data supported by objective evidence and verifiable
(validity). Objectivity evidence should be evaluated on the basis of the conditions
surrounding the creation, measurement, and arrest or acknowledgment of accounting
data.Jadi, accounting did not rely on absolute objectivity but rather on relative
objectivity that objectivity is the highest at the time the transaction occurred by
considering the circumstances and information available at the time the.

g. Assumptions
That assumption here is the explanation that all six previous base an assumption or
based on certain assumptions and limitations.
The assumptions are:
a) The unity of business: limited use when applied to the activities of the department,
the operating unit of government, business keiatan individuals or firms and business
activities of affiliated companies (kids)
b) Business Continuity: assumptions based on experience of the company in general
c) The period of one year: the year is the right time for reporting, because it is not too
short, not too long.
d) Cost as though the material accounting: the cost of production factor is HP as
incurred. The assumption behind such reasoning is that economic agents act
rationally, an assumption that is not so true in every state.

e) The purchasing power of money stable. The concept that the carrying amounts of
money that will continue to demonstrate the value is based on the assumption that the
purchasing power of money is stable over time. In periods of inflation is high enough
that assumption obviously no longer valid for certain purposes.
f) The goal is for profit: the company is seen as an organization set up to generate
revenue. This assumption does not doubt its feasibility. The desire to make a profit are
the real characteristics inherent in commercial enterprises in general.