Podcast
Questions and Answers
What principle states that a business entity is separate and distinct from its owner or investor?
What principle states that a business entity is separate and distinct from its owner or investor?
Business Entity Principle
Revenue should be recognized when it is earned, regardless of when the payment is received.
Revenue should be recognized when it is earned, regardless of when the payment is received.
Accrual Accounting principle
What does the Monetary Unit Principle state about the amounts in financial statements?
What does the Monetary Unit Principle state about the amounts in financial statements?
Stated in a single monetary unit
Which principle requires financial statements to be presented with supporting evidence?
Which principle requires financial statements to be presented with supporting evidence?
What principle dictates that assets and income should not be overstated while liabilities and expenses should not be understated?
What principle dictates that assets and income should not be overstated while liabilities and expenses should not be understated?
According to the Matching Principle, how should costs be treated?
According to the Matching Principle, how should costs be treated?
Explain the Materiality Principle in accounting.
Explain the Materiality Principle in accounting.
How does the Cost Principle impact accounting practices?
How does the Cost Principle impact accounting practices?
What is the significance of the Going Concern Principle in accounting?
What is the significance of the Going Concern Principle in accounting?
Explain the Objectivity Principle in financial reporting.
Explain the Objectivity Principle in financial reporting.
What does the Disclosure Principle entail in accounting?
What does the Disclosure Principle entail in accounting?
How does the Accrual Accounting Principle differ from Cash Accounting?
How does the Accrual Accounting Principle differ from Cash Accounting?
Define the Matching Principle in accounting.
Define the Matching Principle in accounting.
