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Maplewood Rice
Accounting Concepts
Question | Answer |
---|---|
Changes in financial information are reported for a specific period of time | Accounting Period Cycle |
Financial statements contain all information necessary to understand a business' financial condition | Adequate Disclosure |
Financial information is recorded and reported separately from the owner's personal financial information | Business Entity |
The same accounting procedures must be followed in the same way in each accounting period | Consistent Reporting |
Financial statements are prepared with the expectation that a business will remain in operation indefinitely | Going Concern |
The actual amount paid for merchandise or other items bought is recorded | Historical Cost |
The revenue from business activities and the expenses associated with earning that revenue are recorded in the same accounting period | Matching Expenses with Revenue |
Business activities creating dollar amounts large enough to affect business decisions should be recorded and reported separately | Materiality |
A source document is prepared for each transaction | Objective Evidence |
Revenue is recorded at the time goods or services are sold | Realization of Revenue |
Business transactions are reported in number that have common values--the dollar in the U.S. | Unit of Measurement |