Name: Castillo, Erica C.

MODULE 2 10/09/20
Grade&Section: ABM -11C Ms. Jaelyn Marasigan

Assessment Task

Task No. 1 (Written Work)

Instructions: A. Below are accounting principles and concepts. Match each 

description to the correct are accounting principles and concepts.

Accounting
Accrual Accounting Eternity
Assumption

Time2Period2Assumption
Going2Concern2Assumption2

Prudence Matching2Principle2
Use of judgment2and2estimates

___________ 1. A company uses calendar or fiscal year in reporting their  

financial2statements. 

____________ 2. An entity will thrive for the next coming years.  

____________ 3. It is also called conservatism.  

____________ 4. Expenses and revenues should be recognized at the same   time. 

____________ 5. When there are uncertainties, this assumption is used.

B. Choose five accounting principles and concepts. Explain them briefly.  

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C. Case Analysis. Analyze each of the following cases, and tell what type of 
accounting concept or principle is described in the given scenario. 

1. Janica, an entrepreneur, incur expenses for the repair of her personal car. This 
should not be reported in the books of the business. 

2. Floyd decided to open a new business and he foresees that his business will 
thrive longer in the industry due to increase volume of sales per year.

3. A company records warranty expense even though it is not entirely sure when 
warranties will be performed.