Business Entity
The accounting concept applied when a business's financial information is recorded and reported sseparately from the owner's personal financial information.
Unit of Measurement
The accounting concept applied when business transactions are stated in numbers that have common values.
Realization of Revenue
The accounting concept applied when revenue is recorded at the time goods or services are sold.
Objective Evidence
The accounting concept applied when a source document is prepared for each transaction.
Accounting Period Cycle
The accounting concept applied when changes in financial information are reported for a specific period of time in the form of financial statements.
Matching Expenses with Revenue
The accounting concept applied when revenue from business activities and expenses associated with earning that revenue are recorded in the same accounting period.
Adequate Disclosure
The accounting concept applied when financial statements contain all information necessary to understand a business's financial condition.
Going Concern
The accounting concept applied when financial statements are prepared with the expectation that a business will remain in operation indefinitely.
Historical Cost
The accounting concept applied when the actual amount paid for merchandise or other items bought is recorded.
Consistent Reporting
The accounting concept applied when the same accounting procedures are followed in the same way in each accounting period.