Accounting Principles and Charaterisitics

Front

Belief that a company will remain in operation for the foreseeable future

Back

Going Concern Assumption

Front

Indicates that personal and business recordkeeping should be separately maintained

Back

Economic Entity Assumption

Front

Only those items that can be expressed in money are included in the accounting records

Back

Monetary Unit Assumption

Front

Separates financial information into time periods for reporting purposes

Back

Periodicity Assumption

Front

Measurement basis used when a reliable estimate of fair value is not available

Back

Historical Cost Principle

Front

Dictates that companies should report all circumstances and events that make a difference to financial statement users

Back

Full Disclosure Principle

Front

Accounting information cannot be selected, prepared, or presented to favor one set of interested users over another

Back

Neutrality

Front

Accounting information must be available to decision-makers before it loses its ability to influence their decisions

Back

Timeliness

Front

Accounting information is prepared on the assumption that users have a reasonable understanding of accounting and general business and economic conditions

Back

Understandability

Front

Accounting information provides a basis to evaluate a previously made decision

Back

Confirmatory Value