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  • 03 Generalization

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    Genny Madura
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    The document discusses the principles of continuity, periodicity, and accrual accounting and why they are necessary for a company to account for transactions within accounting periods. These principles provide a foundation to properly record transactions and prevent mistakes. They allow a company to determine if improvements are needed, if the company had a loss, and when to take action, as continuity shows if a company is ongoing concern while periodicity and accrual accounting help allocate revenues and expenses to the proper accounting periods.

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    The document discusses the principles of continuity, periodicity, and accrual accounting and why they are necessary for a company to account for transactions within accounting periods. These principles provide a foundation to properly record transactions and prevent mistakes. They allow a company to determine if improvements are needed, if the company had a loss, and when to take action, as continuity shows if a company is ongoing concern while periodicity and accrual accounting help allocate revenues and expenses to the proper accounting periods.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    10 views1 page

    03 Generalization

    Uploaded by

    Genny Madura
    The document discusses the principles of continuity, periodicity, and accrual accounting and why they are necessary for a company to account for transactions within accounting periods. These principles provide a foundation to properly record transactions and prevent mistakes. They allow a company to determine if improvements are needed, if the company had a loss, and when to take action, as continuity shows if a company is ongoing concern while periodicity and accrual accounting help allocate revenues and expenses to the proper accounting periods.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
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    MADURA, GENNY M.

    What is the principle?

    “Why are the concepts of continuity, periodicity, and accrual


    accounting necessary for a company to account for transactions within the
    duration of accounting periods?”
     Because the concepts of these three tells where or when your company
    needs an assistant for preparing or interpreting an account for transaction.
    It provides a foundation to prevent a mistake when you are recording a
    transaction. It is necessary for a company the continuity because they will
    know if the company needs an improvement or the company has a loss.
    So, it easy to determined when you can take an action.

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