What is your understanding on the given concept map about accounting principles?
Answer (1)
Understanding these principles helps students see why accountants make certain choices and ensures financial reports are reliable, clear, and fair for users like owners, investors, and managers.Consistency – Using the same methods each year so financial reports are comparable.Materiality – Reporting important information that can influence decisions.Going Concern – Assuming the business will continue operating, not closing soon.Accrual Basis – Recording income and expenses when they happen, not just when cash changes hands.Objectivity – Using verifiable evidence, not opinions, in financial reporting.Conservatism – Being careful not to overstate assets or income.
