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Accounting principle
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6 cards·by sushi
All transaction can be measured and expressed in monetary term. RM is the common unit of
measurement in Malaysia
Monetary measurement
It is assumed that the business will continue into the foreseeable future
Going concern
The life of the business is divided into nominated period. E.g. 1/1/2013 to 31/12/2013
Accounting period
The effects of transaction are recognized when they occur and they are recorded in the
accounting records and reported in the financial stat
Accrual basis
Asset are recorded at the price paid at the time of purchase
Historical cost
This concept assumes that every transaction has a dual effect, i.e. it affects two accounts in
their respective opposite sides
Duality concept