Obligation to transfer cash or other resources as a result of a past transaction
Liability
Distributions paid by a corporation to its shareholders
Dividends
Inflow of an asset from providing a good or service
Revenue
Owner's contribution of cash to a corporation in exchange for stock
Investment
Increase in equity during a period from non owner transactions
Comprehensive Income
Increase in equity from peripheral or incidental transactions
Gain
The owners' residual interest in the assets of a company
Owner's Equity
An item owned by the company representing probable future benefits
Asset
Decrease in equity from peripheral or incidental transactions
Lose
Outflow of an asset related to the production of revenue
Expense
information confirms expectations
Confirmatory value
concerns the relative size of an item and its effect on decisions
Materiality
implies consensus among different measurers
verifiability
information is useful in predicting the future
predictive value
the original transaction value upon acquisition
Historical cost principle
criteria usually satisfied at point of sale
Realization principle
the enterprise is separate from its owners
economic entity assumption
all information that could affect decisions should be reported
Full-disclosure principle
the life of an enterprise can be divided into artificial time periods
periodicity
record expenses in the period the related revenue is recognized
Matching principle
the entity will continue indefinitely
Going concern assumption