Accounting Concepts and Principles

Front

All relevant information should be included in the financial reports.

Back

Disclosure principle

Front

In case of doubt, assets and income should not be overstated.

Back

Conservatism principle

Front

Assume that the company will continue indefinitely.

Back

Going concern principle

Front

All transactions should be supported by unbiased evidence.

Back

Objectivity principle

Front

Expenses should be recorded in the period when the revenue is generated.

Back

Matching principle

Front

Minimal costs incurred should be recorded as an expense.

Back

Materiality principle

Front

A Philippine company should report financial statements in pesos.

Back

Monetary unit principle

Front

A barber who performs services for a client should record revenue.

Back

Accrual accounting principle

Front

Statement of Financial position should be recorded as of December 31, 2015.

Back

Time period principle

Front

A company that purchases furniture should record it at its acquisition price.

Back

Cost principle