Create an accounting situation which iplies the basic concept and principles of accounting and specify the concept/s being used. P.s. You may use your personal experiences if you think the concept/s in/are applicable. Example: A. Jeepney Driver carried a total of 50 passengers and they paid 10 each except for 5 passengers, the jeepney driver paid 100 php for gasoline and 50 for his lunch. For this situation, The following concepts are being applied; 1. Seperate business Entity - Payment for gasoline is chargd to business while lunch paid is charged to the driver'os personal Expense. 2. Money Measurement, Matching and Cost Concept - driver records 450 income from transport ervices and 100 for gasoline expense. 3. Accrual concept - driver recognizes 50 as accounts recievable for the unpaid fares.
Create an accounting situation which iplies the basic concept and principles of accounting and specify the concept/s being used. P.s. You may use your personal experiences if you think the concept/s in/are applicable. Example: A. Jeepney Driver carried a total of 50 passengers and they paid 10 each except for 5 passengers, the jeepney driver paid 100 php for gasoline and 50 for his lunch. For this situation, The following concepts are being applied; 1. Seperate business Entity - Payment for gasoline is chargd to business while lunch paid is charged to the driver'os personal Expense. 2. Money Measurement, Matching and Cost Concept - driver records 450 income from transport ervices and 100 for gasoline expense. 3. Accrual concept - driver recognizes 50 as accounts recievable for the unpaid fares.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Create an accounting situation which iplies the basic concept and principles of accounting and specify the concept/s being used.
P.s. You may use your personal experiences if you think the concept/s in/are applicable.
Example:
A. Jeepney Driver carried a total of 50 passengers and they paid 10 each except for 5 passengers, the jeepney driver paid 100 php for gasoline and 50 for his lunch.
For this situation, The following concepts are being applied;
1. Seperate business Entity - Payment for gasoline is chargd to business while lunch paid is charged to the driver'os personal Expense.
2. Money Measurement, Matching and Cost Concept - driver records 450 income from transport ervices and 100 for gasoline expense.
3. Accrual concept - driver recognizes 50 as accounts recievable for the unpaid fares.
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