Going concern assumption
Is the rationale for why plant assets are not reported at liquidation value. (Do not use the cost principle.)
Economic entity assumption
Indicates that personal and business record-keeping should be separately maintained.
Full disclosure principle
Ensures that all relevant financial information is reported.
Monetary unit assumption
Assumes that the dollar is the "measuring stick" used to report on financial performance.
Materiality
Requires that accounting standards be followed for all significant items.
Time period assumption
Separates financial information into time periods for reporting purpose.
Matching principle
Requires recognition of expenses in the same period as related revenues.
Cost principle
Indicates that market value changes subsequent to purchase are not recorded in the accounts.