give at least one real life example for each principle given below the write your example on the lines provided business entity principle
objectivity principle _____
Cost principle ______
Accrual accounting principle ______
Materiality principle _____
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Answer :
Objectivity Principle
Every time my customer paid their items,I should have a copy the receipt as evidence.
Cost Principle
My custumer paid 1 bottle of mineral water for fifteen pesos.I should record fifteen pesos at the price it was purchased.
Accurual Accounting Principle
I have received an electricity bill from meralco. I recorded it as an expense even so it's still unpaid.
Materiality Principle
I purchased a broom for the groceries cleanliness maintenance. It has a two years estimated useful life. Since it is immaterial relative to assets, I recorded it as an expense.