Group 3: Nayanza McCaw, Peter Swaby, Arianna Nelson

Class: 1 Sci

Teacher: Ms. Stewart

Accounting Principles
What are Accounting Principles?

Accounting principles are the rules and guidelines that companies must follow when reporting
financial data.Some of the most fundamental accounting principles include the following:

● Accrual principle
● Conservatism principle
● Consistency principle
● Cost principle
● Economic entity principle
● Full disclosure principle
● Going concern principle
● Matching principle
● Materiality principle
● Monetary unit principle
● Reliability principle
● Revenue recognition principle
● Time period principle

We will only be discussing 3 of the accounting principles: Historical cost, Revenue, and
Matching Principle.

1. Historical Cost

The historical cost principle states that businesses must record and account for most
assets and liabilities at their purchase or acquisition price. In other words, businesses
have to record an asset on their balance sheet for the amount paid for the asset. The asset
cost or price is then never adjusted for changes in the market or economy and changes
due to inflation.

2. Revenue
 The revenue recognition principle says that revenue should be recorded when it has been
earned, not received. The revenue recognition concept is part of accrual accounting,
meaning that when you create an invoice for your customer for goods or services, the
amount of that invoice is recorded as revenue at that point, and not when the money is
received from the customer.

3. Matching

The matching principle states that the related revenues and expenses must be matched in
the same period. This is done in order to link the costs of an asset or revenue to its
benefits.

Cooperatives & Non – Profit Organizations

Cooperatives Non-Profit Organizations

Features Voluntary Passion for mission,

Organisation,Democratic Participation of volunteers,
Management,Service Motive. Atmosphere of "scarcity"

Advantages Less Taxation, Funding Employee Commitment,

Opportunities, Reduce Costs Financial Benefits, Intrinsic
and Improve Products and Rewards.
Services

Disadvantages Obtaining Capital through Limited Funding, Social

Investors, Lack of Pressure, Public Scrutiny.
Membership and
Participation.

Examples in Jamaica C&WJ Credit Union friends of the redeemer

United.

Bibliography
Accounting Principles Definition

The Revenue Recognition Principle: Definition & Examples

Matching Principle .

Historical cost principle

Advantages and Disadvantages of a Cooperative

Features of Cooperative form of Business