IGCSE Accounting Principles and Concepts

Any of the owners' personal financial transactions should be kept separate from the company's financial records.

As a result, any personal expenses incurred by business owners will appear as Drawings on the business accounting records.

The accounting principle mentioned above is .......

Only information with a monetary value should be recorded in financial statements. (typically in a certain currency, such as $, Rp, etc.)

Some elements of a business, such as loyal consumers and employee loyalty, cannot be measured in monetary terms will not be recorded in accounting records.

The accounting principle mentioned above is .......

All transactions should be reported using the original true cost of purchase (cost when the assets was bought), not the market value.

The accounting principle mentioned above is .......

When a company uses a specific accounting policy to record its transactions, it should stick to that policy for future financial statements as well.

The accounting principle mentioned above is .......

Every business transaction has two sides (debit and credit), requiring the creation of two entries for each one.

The accounting principle mentioned above is .......

It believes that the firm will continue to operate for the foreseeable future (forever).

The accounting principle mentioned above is .......

Regardless of whether they were paid, all sales or revenues generated during the period must be recorded.

For example, if a company sends items and invoices to clients on January 25, they can record sales or revenue on that date even if they have not yet received the payment.

The accounting principle mentioned above is .......

Owners/managers of a business should not be overly optimistic, as this could lead to profits being inflated and deceptive to financial statement users.

Profit and assets should not be inflated, while expenses and liabilities should not be minimized, according to this principle.

The accounting principle mentioned above is .......

This principle suggests that minor items (insignificant cost) may not be included in financial statements.

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Cost and revenue should be matched to the same accounting period, according to this rule.

Any expenses spent by an organization during that time period must be charged to the income statement.

other name of this principles is ACCRUALS.

The accounting principle mentioned above is .......