INTRODUCTION TO ACCOUNTING

The part of accounting that is concerned with recording data is often known as _____________.

• Accounting

• Bookkeeping

The process of classifying, recording and summarizing and interpreting financial information is _______________.

• Accounting

• Bookkeping

A business and its owner are two separate entities.

• separate business entity

• Going concern

We should report all the business transactions or events in Ringgit Malaysia

• going concern

• monetary unit

Business activities can be divided into specific periods for example a month, a quarter, six months or a year.

• Accounting period

• Matching

Business should record the business activities based on the cost value or the actual price stated in the source document.

• Matching

• Historical cost

This principle helps business to determine the profit or loss incurred for the period by deducting the related expenses.

• separate business entity

• Matching

Business should report relevant, reliable, timely, unbiased and free form mistakes or errors information.

• Full disclosure

• Conservatism

Business must avoid overstating values of assets and revenue, and understanding liabilities and expenses when recording.

• conservatism

• double entry

Accounting records and reports must be based upon objective evidence.

• Double entry

• Objectivity