Basic Civil Engineering notes on Transportation Engineering & Modes of Transport
Accounting Principles
1.
2. • According tothe business entity principles,business is
consideredto be separate anddistinctfromits owner.
Businesstransactions,therefore, are recorded in the
book of accountsfrom the business pointof view and
notowner.
3. • According to the money
measurement principles, transactions
and events that can be measured in
money terms are recorded in the
book of accounts of the enterprise.
In other words, money is the
common denominator in recording
and reporting all transactions.
4. Accounting period principle
• According to the accounting period
principles, the life of an enterprise is
broken into smaller periods so that its
performance is measured at regular
intervals.
5. • According to the full disclosure principles, “there
should be complete and
understandable reporting on the
financial statements of all
significant information relating
to the economic affairs of the
entity.”
6. • The materiality principles refers to the
relative importance of an item or an events.
• Accordingto the American Accounting
Associations, “an item influence the
decisions of an informed
investor.”
7. • According to the matching concept, cost incurred to earn
revenue is recognized as expenses in the period when
related revenue is recognized as earned.
