ACCOUNTING CONCEPTS pt1

This refers to a common set of accounting principles, standards, and procedures issued by the Financial Accounting Standards Board.

• Accounting Concepts

• Generally Accepted

  Accounting Principles

  (GAAP)

• Accounting Entity

These are basic assumptions on which we base our accounting records.

• Accounting entity

• Accounting concepts

• Accounting principles

This accounting concept assumes that a company or business will continue operating indefinitely until the foreseeable future.

• Accrual basis

• Monetary unit

• Going concern

According to cash basis of accounting, revenue is recorded when earned and expenses are recorded when it happens.

• TRUE

• FALSE

Meralco billing and payment is an example of accrual basis of accounting.

• TRUE

• FALSE

Seri purchased a new coat for her boyfriend. This transaction should be included in her business transaction records or business book of accounts.

• TRUE

• FALSE

Which of the following DOES NOT show a correct time period of reporting financial records.

• January 1, 2023 to June 15, 2023

• January 1, 2023 - December 31, 2023

• June 15, 2023 - June 15, 2024