Term
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Definition
| A record is made only of information that can be expressed in monetary terms. |
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Term
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Definition
| Accounts are kept for companies, as distinguished from the persons who are associated with these companies. |
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Term
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Definition
| An entity will continue to operate for an indefinitely long period in the future. |
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Term
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Definition
| An asset is entered initially in the accounting records at the price paid to acquire it. |
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Term
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Definition
| Assets = Liabilities + Owners' Equity |
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Term
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Definition
| Accounting measures activities for a specified interval of time. |
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Term
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Definition
| Recognize revenues only when they are reasonably certain; recognize expenses as soon as they are reasonably possible. |
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Term
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Definition
| The amount recognized as revenue is the amount that is reasonably certain to be realized. |
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Term
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Definition
| When a given event affects both revenues and expenses, the effect on each should be recognized in the same accounting period. |
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Term
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Definition
| Once an entity has decided on one accounting method, it should use the same method for all subsequent methods of the same character unless it has a sound reason to change methods. |
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Term
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Definition
| Insignificant events may be disregarded, but there must be full disclosure of all important information. |
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