Name: Ma. Beatriz A.

Patron Section: A12-01 SHSAcounBM1 Module 1 Challenge #1

LEARNING MATRIX TABLE ON ACCOUNTING PRINCIPLES AS APPLIED IN BUSINESS SITUATION

Accounting Principles Business Source of Information Your Learning

Applications

Example:

Cost Principle
From an accountant's point of
view, the term "cost" refers to
the amount spent (cash or the
cash equivalent) when an item
was originally obtained,
whether that purchase
happened last year or thirty
years ago. For this reason, the
amounts shown on financial
statements are referred to
as historical cost amounts.
Business entity principle
The principle is used https://www.accountingcoach.com/accounting-principles/explanation I realized that cost
in the business to principle is very
determine the important in the
amount of money business operations
used in the and in recording
acquisition of business transactions
property, because it provides
equipment, the guide in
supplies, among determining the
others. It is amount and cost to be
essential in the recorded in the
business operations financial statement.
in order to account
the acquired assets.
The business is https://www.accountingformanagement.org/business-entity-concept/ I realized that business
using the principle entity principle is

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The business entity concept
(also known as separate
entity and economic entity
concept) states that the
transactions related to a
business must be recorded
separately from those of its
owners and any other
business
Accrual Principle
The accrual principle is an
accounting concept that
requires accounting
transactions to be recorded
in the time period in which
they occur, regardless of the
time period when the actual
cash flows for the
transaction are received.
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when taking essential in the
account of the business for it
events that affect separates the
the business and business’ properties
disregarding the and transactions from
events that do not the owner’s personal
affect the business assets to avoid
entity in the confusion.
accounting records.
The principle is also
used to separately
measure the
performance of a
particular business
in terms of
profitability and
cash flows.
The principle is I realize that the
being used in the https://corporatefinanceinstitute.com/resources/knowledge/accounting/accrual- accrual principle is
business to record necessary for the
an expense or principle/#:~:text=The%20accrual%20principle%20is%20an,for %20the%20transaction%20are business operations
revenue at the %20received.& text=Revenue%20does%20not%20necessarily%20 mean,against%20expenses because accountants
moment of the could present more
transaction or when accurate financial
they are earned and positions.
incurred rather than Furthermore, future
on its payment revenues and
time. expenses are

Matching Principle
Matching principle is the
accounting principle that
requires that the expenses
incurred during a period be
recorded in the same period
in which the related
revenues are earned.
Going concern Principle
The going concern principle
is the assumption that a
business will continue to
exist in the near future, in
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considered.
The principle is https://www.freshbooks.com/hub/accounting/matching-principle I recognized that the
being used in the matching principle is
business to ensure important in the
the consistency in business because it
the financial allows to link the costs
statements by of an asset or revenue
matching the cost to its benefits such as
and expense with depreciation and, etc.
the revenue The principle also
generated. It also ensures the
allows an asset to consistency and
be distributed and accuracy of the
matched over the financial positions.
course of its useful
life in order to
balance the cost
over a period.
The principle is https://debitoor.com/dictionary/going-concern-principle I realize that the going
being used in the concern principle
business to prepare helps the business to
the financial foresee the future of
statement on a the company and
going concern basis. allows the business to
other words, that it will not
liquidate or be forced out of
business.
The reliability principle is an
accounting principle used as
a guideline in determining
which financial information
should be presented in the
accounts of a business.
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As well as it allows perform long term
the business to transactions.
perform accrued or
prepaid expenses
and defer some of
their prepaid
expenses to future
accounting periods.
This principle is https://debitoor.com/dictionary/reliability-principle#:~:text=The%20reliability%20principle%2 0is I realized that we
being used in the %20an,the%20accounts%20of%20a%20business.&text= This%20principle%20is%20laid should only record
business to ensure %20out,accurate%20accounting%20recording%20and%20practices. those transactions
all business with basis such as
accounting records receipts for reliability
and statements are of accurate and
true and fair relevant information.
through recording
the transactions
with valid proof
only.