2. Accounting Concepts Basic concepts For business operation For quality of financial statements

3. Basic Concepts Objectivity Business Entity Concept Money Measurement Concept Going Concern Concept Back

4. Objectivity All accounting figures recorded in the books MUST be verified. Office Furniture Back $18,000

5. Business Entity Concept Business is an individual legal person. It has its own assets different from those of the owner. Will it be appeared on the balance sheet of the business? Back $300 The owner

6. Money Measurement Concept Which one should be recorded in the book? Back All recorded transactions MUST be quantified. I am very honest. My honesty is worth $100,000. My monthly salary is $9,000.

7. For business operation Historical Cost Concept Realization Concept Accrual Concept Back

8. This year, the apartment is worth $3 million. Historical Cost Concept Back $ 1 million How much should be shown on the balance sheet this year?

9. Monthly rent received : $2,000 How much should be recorded in Rent Received Account this year? Realization Concept Revenue $25,000 Back

10. Accrual Concept Back Expense Electricity Jan $900 Feb 800 Mar 750 $2,200 How much should be recorded in Electricity Account this year?

11. For quality of financial statement Consistency Concept Materiality Concept Prudence Concept Back

12. Will it be recorded as EXPENSE or FIXED ASSET ? Back Materiality Concept $15