Accounting Principles, Assumptions and Methods

The (?????) dictates that companies record Assets at their cost. This is true not only at the time the asset is purchased, but also over the time the asset is held.

The (?????) states that assets and liabilities should be reported at (?????) (the price received to sell an asset or settle a liability). (?????) information may be more useful than historical cost for certain types of assets and Liabilities.

-  Under the (?????), companies record transactions that change a company's financial statements in the periods in which the events occur.

-  Companies recognize revenues when they perform services. Recognizing expenses when incurred.

It is the used basis in Accounting (in accordance with GAAP)

Under (?????), companies record revenue when they receive cash. They record an expense when they pay out cash.

The (?????) requires that companies recognize revenue in the accounting period in which the performance obligation is satisfied. (When it to performs a service or sell a product to a customer)

Match expenses with revenues in the period when the company makes efforts to generate those revenues.

This practice of expense recognition is referred to as the (?????). It dictates that efforts (expenses) be matched with results (revenues).

The (?????) requires that companies include in the accounting records only transaction data that can be expressed in money terms.

-  This assumption enables accounting to quantify (measure) economic events.

• -The (?????) is vital to applying the historical cost principle.