GAAP Activity

All business transactions are separated from the owner’s personal transactions.

• Accounting Assumption

• Accounting Principle

This refers to the amount spent when an item was originally obtained.

• Accounting Principle

• Accounting Assumption

The accountant should include sufficient information for users to make informed judgments.

• Accounting Assumption

• Accounting Principle

Expenses must be matched with revenues.

• Accounting Assumption

• Accounting Principle

Business transactions are recognized when they occur.

• Accounting Assumption

• Accounting Principle

The relevance of the historical cost principle is dependent on going concern assumption.

• Accounting Principle

• Accounting Assumption

Economic activities in the Philippines are reported in Philippine peso.

• Accounting Principle

• Accounting Assumption

Revenues are recognized as soon as goods have been sold.

• Accounting Assumption

• Accounting Principle

Professional judgment is needed to decide whether an amount is insignificant or immaterial.

• Accounting Assumption

• Accounting Principle

It leads accountants to anticipate or disclose the losses.

• Accounting Principle

• Accounting Assumption