Assumption that an organization's activities can be divided into specific time periods such as months, quarters, or years.
Constraint which prescribes that accounting for items that significantly impact financial statement and any inferences from them adhere strictly to GAAP.
Financial statement that lists types and dollar amounts of assets, liabilities, and equity at a specific date.
Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.
Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities; also called net-assets.
The principle prescribing that revenue is recognized when earned.
Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Independent group of full-time members responsible for setting accounting rules.
Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.
Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Ability to generate future revenues and meet long-term obligations.
Creditors' claims on an organization's assets; involves a probable future payment of assets, products, or services that a company is obligated to make due to past transactions or events.
The principle that prescribes that a company record the expenses it incurred to generate the revenue reported. Also called the expense recognition principle.
Principle that prescribes financial statement information, and its underlying transactions and events, be based on relevant measures of valuation; also called the cost principle.
A financial statement that lists cash inflows (receipts) and cash outflows (payments) during a period; arranged by operating, investing, and financing.