Accounting principles Flashcards
1
Q
Business entity separates from the owner
A
Economic entity assumption
2
Q
This principle states that records should be stated in philippine peso
A
Monetary unit assumption
3
Q
Reporting period (cut off)
A
Time period Assumption
4
Q
Historical cost
A
Cost principle
5
Q
Notes to financial statement
A
Full disclosure
6
Q
Business will continue to operate in foreseeable event
A
Going concern
7
Q
Accrual basis of accounting, expenses should be matched with the revenue
A
Matching principle
8
Q
Revenue should be recognized on the period earned
A
Revenue Recognition
9
Q
If the amount is insignificant —-> Allowed
A
Materiality
10
Q
Insignificant
A
Immaterial
11
Q
Significant
A
Material
12
Q
Two options. One option is beneficial to the entity
A
Conservatism
