Quiz bee fabm2

• Business is assumed to continue to exist or to operate for an infinite period of time

  Going concern or Continuity
• It is measured on acquisition cost


  Going concern assumption
• It is measured in net selling price

  Liquidating concern assumption
• Association of cause and effect

  Matching principle
• Transaction are recorded without any involvement of money yet

  Accrual Basis of Accounting
• Recorded when cash is involved

  Cash Basis
• Accounting period

  Periodicity
• Starts In Jan and ends in Dec

  Calendar Period
• Any 12 consecutive months that's start in any month

  Fiscal Period
• Financial Statement that is prepared monthly, Quarterly, and semiannually

  Interim Financial Statements
• Expenses should be stated in terms of unit measured in peso

  Quantifiability Aspect
• Purchasing power of the peso is stable or constant

  Stability of peso assumption
• Also know as Doctrine of convenience

  Materiality
• Procedures used in preparing financial statement

  GAAP or Generally accepted accounting principles
• Also known as Adequate Disclosure Principles

  Full Disclosure Principle