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