Discuss how basic accounting principles apply in each of the following areas:

1. recording of transactions;

2. preparation of financial statements;

3. cost accounting or budgeting

(Word limit 1,000-1,200 words)

Guidelines:

1. For each of the above three areas listed, you are required to select and discuss four (4) basic accounting principles. To demonstrate your understanding of each of these accounting principles, your discussion should include examples drawn from real-life companies or even fictitious situations. You must demonstrate that you understand how these principles are applied using examples.

2. Please read the rubrics carefully before answering and organize your answers according to the scores given to the questions. Please remember to answer all parts of the questions.

3. Please answer with your own analysis and wordings. You do not need to copy any definition from the course materials, and please do not copy any information directly from the website or other people's comments. Please do not get involved in any plagiarism.