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8 Cards in this Set

  • Front
  • Back
Separate-entity assumption
states that business transactions are separate from the transactions of the owners
Unit-of-measure assumption
states that accounting information should be measured and reported in the national monetary unit
continuity assumption (going-concern)
states that businesses are assumed to continue to operate into the foreseeable future
probable future economic benefits owned by the entity as a result of past transactions
current assets
assets that will be used or turned into cash within one year. Inventory is always considered a current asset.
probable debts or obligations of the entity that result from past transactions, which will be paid with assets or services.
current liabilities
obligations that will be paid in cash or satisfied by providing service within the coming year.
stockholders's equity
the financing provided by the owners and the operations of business