Accounting Principles and Concepts

Front

The same accounting principles must be followed in the same way each accounting period.

Back

Consistent Reporting

Front

The process of making accounting estimates is free from bias.

Back

Neutrality

Front

The revenue from business activities and the expenses associated with earning that revenue are recorded in the same accounting period.

Back

Matching Expenses with Revenue

Front

A source document is prepared for each transaction.

Back

Objective Evidence

Front

Financial information is recorded and reported separately from the owner's personal financial information.

Back

Business Entity

Front

Changes in financial information are reported for a specific period of time in the form of a financial statement.

Back

Accounting Period Cycle

Front

Business transactions are reported in numbers that have common values -- that is, using a common unit of measurement.

Back

Unit of Measurement

Front

Revenue is recorded at the time goods or services are sold.

Back

Realization of Revenue

Front

Financial statements are prepared with the expectation that a business will remain in operation indefinitely.

Back

Going Concern

Front

The actual amount paid for merchandise or other items bought is recorded.

Back

Historical Cost