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11 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Business Entity Concept |
The accounting for a business should be kept separate from personal affairs of the owner and of other businesses. |
Separate from personal ... |
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Continuing Concern Concept |
A business will continue to operate unless stated otherwise. |
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Principle of Conservatism |
Accounting should be fair and reasonable |
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Objectivity principle |
Accounting will be recorded based on objective evidence |
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Revenue Recognition Convention |
Revenue must be recorded at the time transaction is complete |
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Time Period concept |
Accounting takes place over periods of time called fiscal periods. |
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Matching principle |
Expense items must be recorded at the same time as revenue they helped earn. |
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Cost Principle |
Accounting for purchases must be at the cost price to the purchaser |
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Consistency Principle |
A business must use the same accounting methods and procedures from period to period |
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Materiality principle |
Accountants must include any information that might be considered important to users of financial information. |
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Full disclosure principle |
All information needed to fully understand a company's financial statements must be included with these financial statements |
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