Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
8 Cards in this Set
- Front
- Back
|
Economic Entity Assumption
|
presumes that economic events can be identified specifically with an economic entity
|
|
|
Going Concern Assumption
|
in the absence of information to the contrary, it is anticipated that a business entity will continue to operate indefinitely.
|
|
|
Periodicity Assumption
|
allows the life of a company to be divided into artificial time periods to provide timely information
|
|
|
Monetary Unit Assumption
|
states that financial statement elements shgould be measured in terms of the US $.
|
|
|
Historical Cost Principle
|
states that asset and liability measurements should be baed on the amount given or received in the exchange transaction.
|
|
|
Realization Principle
|
Revenue should be recognized when the earnings process is virtually complete and collection is reasonably assured.
|
|
|
Matching Principle
|
states that expenses are recognized in the same period as the related revenues.
|
|
|
Full-disclosure principle
|
means that the financial reports should include any information that could affect the decisions made by external users.
|
