ACCOUNTING PRINCIPLES

Module 1

When you board a public utility vehicle, be it a jeepney or a bus you pay for
fare. All the fares received by the driver represent his Revenues. He has to spend
for gasoline, vehicle repairs, food and a fee called boundary which is paid to the
operator or owner of the vehicle. These would be his Expenses. The excess of his
total revenues over the expenses will be his take home pay called Profit or Net
Income.

Budgeting
- process of receiving money and spending it wisely which is one important area in
accounting.
Revenue
- is the total amount of income generated by the sale of goods or services related to the
company's primary operations. Revenue, also known as gross sales.