MAHAL KO SI RIO QUIZ

Information must be presented clearly

and concisely in order for users to

understand them.

On the other hand, users must have a

reasonable knowledge of business to

review and analyze the information.

• UNDERSTANDABILITY

• COMPARABILITY

• RELEVANCE

points of likeness and difference.

Information has this characteristics if it

enables users to make comparisons to

identify and understand the similarities

in, and differences among, items

• COMPARABILITY

• TIMELINESS

• UNDERSTANDABILITY

means that financial

information must be available or

communicated early enough when

a decision is to be made.

• RELEVANCE

• COMPARABILITY

• TIMELINESS

Information is considered relevant

if it has the ability to affect the

decision making of the user.

• COMPARIBILITY

• RELEVANCE

• UNDERSTANDABILITY

CHOOSE THE ELEMENTS OF RELEVANCE

• Predictive Value

• Materiality

• Confirmatory Value

• Materiality Value

• Materiality

Under this concept, assets are

initially recorded at their

acquisition cost.

• UNDERSTABILITY

• SEPARATE ENTITY

  CONCEPT

• HISTORICAL COST

  CONCEPT

Under this concept, the business is

viewed as a separate person, and

distinct from its owners.

• CONCEPT FACTS

• SEPARATE ENTITY

  CONCEPT

• SEPERATE DISTINCTION

Under this concept, the business is

assumed to continue to exist or to operate

for an indefinite period of time.

This is necessary for accounting

measurement to be meaningful.

• CONCEPTS

  MATCHING PRINCIPLE

• ACTUAL BASIS

• GOING CONCERN

  ASSUMPTION

Under this concept, economic events/

transactions are recorded in the period in

which they occur rather than at the point of

time when they affect cash.

• MATCHING PRINCIPLE

• HISTORICAL COST

  CONCEPT

• CONCEPTS

  ACCRUAL BASIS

  of Accounting

• QUEEN RBL

Under this concept, assets are

initially recorded at their

acquisition cost.

• SEPARATE ENTITY

  CONCEPT

• HISTORICAL COST

  CONCEPT

• CONCEPTS