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10 Cards in this Set
- Front
- Back
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Business Entity |
Something that indicates an application of a specific accounting concept. |
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Unit of Measurement |
Business transactions are recorded in dollars. |
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Going Concern |
Applied when financial statements are prepared with the expectation that a business will remain in operation indefinitely. |
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Realization of Revenue |
Revenue is recorded at the time goods or services are sold. |
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Objective Evidence |
A source document is prepared for each transaction. |
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Accounting Period Cycle |
Changes in financial information are reported for a specific period of time in the form of financial statements. |
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Consistent Reporting |
The same accounting procedures are followed in the same way in each accounting period. |
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Matching Expenses with Revenue |
Revenue from business activities and expenses associated with earning that revenue are recorded in the same accounting period. |
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Adequate Disclosure |
Financial statements contain all information necessary to understand a business' financial condition. |
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Historical Cost |
The actual amount paid for merchandise or other items bought is recorded. |
