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Fundamental Concepts of Accounting

Trixia Dela Cruz

Philippines

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Compléter Fill the Blanks!Version en ligne Fundamental Concepts of Accounting par Trixia Dela Cruz 1 are the basic rules and assumptions that guide accountants in recording and reporting financial information . 2 A business is treated as a from its owner . This means personal transactions of the owner should not be mixed with business transactions . 3 The means that the business is assumed to be operating in the future . This means it is not expected to close down in the near term . 4 means that assets are recorded at their original purchase price . Even if their market value changes , the recorded amount stays the same . 5 Expenses should be recorded in the same period as the income they helped to earn . When a business earns money , it must also record the costs used to earn that money in the same time period . This is the Principl e 6 In , only transactions that can be measured in money are recorded in accounting .