accounting

It is an organization or section of an organization that stands apart from other organization and individuals as seperate economic unit.

This concepts allows the user to obtain timely information to serve as a basis on making decisioins about future activities.

It allows accountants to add and subtract peso amounts as through each peso has the same purchasing power as any other peso at any time.

It is based on information that flows from activities documented by objective evidence.

It states that acquired assets should be recorded at their actual cost and not at what management thinks they are worth as at reporting date.

Revenue is to be recognized in the accounting period when goods are delivered or services are rendered or performed.

expense should be recognized in the accounting period which goods and services are used up to produce revenue and not when entity pays for those goods and services.

Requires that all relevant information that would affect the user's understanding and assessment of accounting entity are should be disclosed in the financial statements.

The nature and the size of the item are evaluated together to know if it is significant enough to affect evaluations and decisions.

The firm should use the same accounting method from period to period to achieve comparability over time within a single enterprise.