Basic Accounting

Module #1

Stable monetary unit concept – disregards the concept of inflation. The value of a peso is stable
overtime.
Entity Concept – meaning the business if other than the owners. Personal consumption does
not affect the business unless you take money from the business. The business is separate from
the owners.
Going concern - for a company that is financially stable enough to meet its obligations and
continue its business for the foreseeable future. Certain expenses and assets may be deferred in
financial reports if a company is assumed to be a going concern.
Periodicity concept - This typically means that an entity consistently reports its results and cash
flows on a monthly, quarterly, or annual basis.

Matching Type

1. Tax accounting
2. Materiality
3. Objectivity Principle
4. Financial Accounting
5. Revenue Recognition principle
6. Management Accounting
7. Corporation
8. Historical Cost
9. Auditing
10. Government Accounting
11. Expense Recognition principle
12. Bookkeeping
13. Financial Management
14. Consistency Principle
15. Adequate disclosure