Term
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Definition
| Information is useful in predicting the future. |
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Term
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Definition
| Pertinent to the decision at hand. |
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Term
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Definition
| Information is available prior to the decision. |
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Term
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Definition
| Decreases in equity resulting from transfers to owners. |
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Term
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Definition
| Information confirms expectations. |
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Term
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Definition
| Along with relevance, a primary decision-specific quality. |
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Term
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Definition
| Results if an asset is sold for more than its book value. |
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Term
| Representational Faithfulness |
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Definition
| Agreement between a measure and the phenomenon it purports to represent. |
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Term
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Definition
| The change in equity from nonowner transactions. |
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Term
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Definition
| Concerns the relative size of an item and its effect on decisions. |
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Term
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Definition
| Important for making interfirm comparisons. |
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Term
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Definition
| Accounting information should not favor a particular group. |
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Term
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Definition
| The process of admitting information into financial statements. |
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Term
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Definition
| Applying the same accounting practices over time. |
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Term
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Definition
| Requires consideration of the costs and value of information. |
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Term
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Definition
| Implies consensus among different measurers. |
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Term
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Definition
| Record expenses in the period the related revenue is recognized. |
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Term
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Definition
| The life of an enterprise can be divided into artificial time periods. |
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Term
| Historical Cost Principle |
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Definition
| The original transaction value upon acquisition. |
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Term
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Definition
| Criteria usually satisfied at point of sale. |
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Term
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Definition
| The entity will continue indefinitely. |
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Term
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Definition
| A common denominator is the dollar. |
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Term
| Economic Entity Assumption |
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Definition
| The enterprise is separate from its owners and other entities. |
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Term
| Full-disclosure Principle |
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Definition
| All information that could affect decisions should be reported. |
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Term
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Definition
| Not a qualitative characteristic, but a practical justification for some accounting choices. |
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Term
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Definition
| Used to identify and process external transactions. |
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Term
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Definition
| Determine the dual effect on the accounting equation. |
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Term
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Definition
| Record of the dual effect of a transaction in debit/creidt form. |
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Term
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Definition
Transferring balances from the journal to the ledger. |
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Term
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Definition
| List of accounts and their balances after recording adjusting entries. |
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Term
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Definition
| One-month U.S. Treasury bill. |
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Term
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Definition
| Internal events recorded at the end of a reporting period. |
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Term
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Definition
| List of accounts and their balances after recording adjusting entries. |
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Term
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Definition
| Primary means of disseminating information to the extermal decision makers. |
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Term
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Definition
| To zero out the owners' equity temporary accounts. |
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Term
| Post-closing Trial Balance |
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Definition
| List of accounts and their balances after recording closing entries. |
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Term
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Definition
| A means of organizing information: not part of the formal accounting system. |
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Term
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Definition
| An organized array of assets,liabilities and equity. |
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Term
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Definition
| Relates to the amount of time before an asset is converted to cash or a libility is paid. |
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Term
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Definition
Current assets minus current liabilities |
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Term
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Definition
| Occurs after the fiscal year-end but before the statements are issued. |
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Term
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Definition
| The statements are presented fairly in conformity with GAAP. |
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Term
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Definition
| Recorded when an expense is incurred but not yet paid. |
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