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8 Cards in this Set
- Front
- Back
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The economic life of a business can be divided into artificial time periods
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Time period assumption
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The business will continue in operation long enough to carry out its existing objectives
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Going Concern Assumption
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Assets should be recorded at their cost
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Cost Principle
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Economic events can be identified with a particular unit of accountability
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Economic Entity Assumption
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Circumstances and events that make a difference to financial statement users should be disclosed
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Full Disclosure Principle
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Only transaction data that can be expressed in terms of money should be included in the accounting records
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Monetary Unit Assumption
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The constraint of determining whether an item is large enough to likely influence the decision of an investor or creditor.
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Materiality
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The approach of choosing an accounting method, when alternatives exist, that will least likely overstate assets and net income.
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Conservatism
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