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Accounting-Concepts-and-Principles-Copy.ppt
- 1. FUNDAMENTALS OF ACCOUNTANCY, BUSINESSAND MANAGEMENT 1 TEACHER: JESSKA SO Accounting Concepts and Principles Module 2 This material’s content and discussion were based on the Department of Education released module. The teacher does not intend to infringe any copyrights. This material is for educational purposes only.
- 2. CONTENT This lesson willlet you know the accounting concepts and principles. Here, you are going to identify generally accepted accounting principles. Sample Footer Text 2/7/20XX 2
- 3. LEARNING OBJECTIVES explain the varied accountingconcepts and principles Sample Footer Text 2/7/20XX 3 At the end of this chapter, the learners should be able to: solve exercises on accounting principles as applied in various cases
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- 5. EXERCISE 1 Sample FooterText The owner’s property should NOT be included in the premises account of the business. 2/7/20XX 5 TRUE FALSE TRUE Business entity concept
- 6. Sample Footer Text Adomestic company owns by a Filipino, a resident citizen, should report financial statements in dollars if they have a store in the United States. 2/7/20XX 6 TRUE FALSE FALSE Monetary Unit Assumption
- 7. Sample Footer Text Galestarted a business assuming that it will not enter into a liquidation and the business will run forever. 7 a. Accrual Basis ANS: b. Going Concern b. Going Concern c. Materiality Principle d. Matching Principle
- 8. Sample Footer Text Yousold a piece of cake to your neighbor. Apparently, your customer is out of cash so you had to consider it as credit but still recorded it in your books. What concept of accounting was observed? 8 a. Accrual Basis ANS: a. Accrual Basis b. Going Concern c. Materiality Principle d. Matching Principle
- 9. Sample Footer Text Thelife of a business may be reported either monthly or yearly depending on the period of the business. 9 a. Economic Entity Concept ANS: d. Time Period Concept b. Historical Cost Principle c. Monetary Unit Concept d. Time Period Concept
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- 11. EXERCISE 2 Sample FooterText When a company purchases a laptop, it should be recorded at the price it was purchased. 2/7/20XX 11 TRUE FALSE TRUE Cost principle
- 12. EXERCISE 3 Sample FooterText When you provide tutorial services to a customer and there is a transportation cost incurred related to the tutorial services, it should be recorded as an expense for that period. 2/7/20XX 12 TRUE FALSE TRUE Matching principle
- 13. EXERCISE 5 Sample FooterText A company with a net income of P10M per month should record a purchased eraser amounting to P150 as an asset. 2/7/20XX 13 TRUE FALSE FALSE Materiality principle
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- 16. DIRECTIONS: MATCH THE FOLLOWING ACCOUNTINGPRINCIPLES WITH THEIR DEFINITION. WRITE THE LETTER OF YOUR ANSWER IN YOUR PAPER. 2/7/20XX Sample Footer Text 16 PART I. MATCHING TYPE
- 17. 2/7/20XX Sample Footer Text 1 7 a.Goingconcern principle b.Objectivity principle c.Matching principle d.Materiality principle e.Time period principle f. Cost principle g.Disclosure principle h.Monetary unit principle i. Accrual accounting principle j. Conservatism principle 1. All relevant information should be included in the financial reports 2. In case of doubt, assets and income should not be overstated.
- 18. 2/7/20XX Sample Footer Text 1 8 a.Goingconcern principle b.Objectivity principle c.Matching principle d.Materiality principle e.Time period principle f. Cost principle g.Disclosure principle h.Monetary unit principle i. Accrual accounting principle j. Conservatism principle 3. Assume that the company will continue indefinitely. 4. All transactions should be supported by unbiased evidence.
- 19. 2/7/20XX Sample Footer Text 1 9 a.Goingconcern principle b.Objectivity principle c.Matching principle d.Materiality principle e.Time period principle f. Cost principle g.Disclosure principle h.Monetary unit principle i. Accrual accounting principle j. Conservatism principle 5. Expenses should be recorded in the period when the revenue is generated. 6. Minimal costs incurred should be recorded as an expense.
- 20. 2/7/20XX Sample Footer Text 2 0 a.Goingconcern principle b.Objectivity principle c.Matching principle d.Materiality principle e.Time period principle f. Cost principle g.Disclosure principle h.Monetary unit principle i. Accrual accounting principle j. Conservatism principle 7. A Philippine company should report financial statements in pesos. 8. A barber who performs services for a client should record revenue.
- 21. 2/7/20XX Sample Footer Text 2 1 a.Goingconcern principle b.Objectivity principle c.Matching principle d.Materiality principle e.Time period principle f. Cost principle g.Disclosure principle h.Monetary unit principle i. Accrual accounting principle j. Conservatism principle 9. Statement of Financial position should be recorded as of December 31, 2015. 10. A company that purchases furniture should record it at its acquisition price.
- 22. INSTRUCTIONS: ANSWER THE QUESTIONS BELOW.WRITE YOUR ANSWER IN YOUR PAPER. . 2/7/20XX Sample Footer Text 22 PART II. PROBLEM SOLVING
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- 24. THANK YOU Sample FooterText 2/7/20XX 24