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5 Cards in this Set
- Front
- Back
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separate entity concept
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idea that the activities of an entity are to be separated from those of the individual owners
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assumption of arms-length transactions
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a buyer and a seller are rational and free to act independently, each trying to make the best deal possible in establishing the terms of a transaction
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cost principle
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idea that transactions are recorded at their historical costs or exchange prices at the transaction date
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monetary measurement concept
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in order to be included in the financial statements, the value of an item must be measurable in terms of dollars
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going concern assumption
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an accountant must assume that a business will survive for the foreseeable future
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