International Travel and Tourism Management (BSITTM)
Class notes
Introduction to Accounting Terminologies
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Course
International Travel and Tourism Management (BSITTM)
Institution
Lyceum Of The Philippines University
This pdf document consists of the Accounting Terminologies that are summarized and easy to understand. This can be for Accounting Students or Non-Accounting Students who have a Fundamentals of Accounting Class.
Introduction to accounting (accounting for non-accounting students)
Subjects
accounting
accounting subject
terminologies
class notes
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Lyceum Of The Philippines University
International Travel and Tourism Management (BSITTM)
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INTRODUCTION TO ACCOUNTING
I. BASIC PRINCIPLES OF ACCOUNTING
a. Cost Principle
- This is the concept where a business should only record its assets, liabilities, and equity investments at
their original purchase costs rather than on their market value.
b. Accrual Principle
- This is the concept where a business should record transactions in the period when they actually occur,
rather than in the periods when there are cash flows associated with them.
c. Revenue Principle
- This is the concept where a business should only recognize revenue when the business has
substantially
completed the earnings process.
d. Matching Principle
- This is the concept where a business should record all expenses for a period that are associated with
the
revenue on the same period.
e. Full Disclosure Principle
- This is the concept where a business should communicate all materials and relevant facts concerning
the financial statements to all its users.
II. BASIC ASSUMPTION IN ACCOUNTING
a. Monetary Unit Assumption
- This is the concept where a business should only record transactions that can be stated in terms of a
unit of currency. This concept keeps a business from engaging in an excessive level of estimation in
deriving the value of its assets and liabilities.
b. Time Period Assumption
- This is the concept where a business should report the results of its operations over a standard period
of time.
c. Business Entity Assumption
- This is the concept where a business should keep separate the transactions of a business from those of
its owners and other businesses. This prevents intermingling of assets which can cause considerable
difficulties when the financial statements of a fledgling business are first audited.
d. Going Concern Assumption
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