Post by Sr. Accountant on Jan 14, 2017 19:30:10 GMT 3
1.Accounting Period Cycle
Changes in financial information are reported for a specific period of time in the form of financial statements
2.Adequate Disclosure
Financial statements contain all information necessary to understand a business' financial condition
3.Business Entity
financial information is recorded and reported separately from the owner's personal financial information
4.Consistent Reporting
The same accounting procedures must be followed in the same way in each accounting period
5.Going Concern
Financial statements are prepared with the expectation that a business will remain in operation indefinitely
6.Historical Costs
The actual amount paid for merchandise or other items bought is recorded
7.Matching Expenses with Revenue
The revenue from business activities and the expenses associated with earning that revenue are recorded in the same accounting period
8.Objective Evidence
A source document is prepared for each transaction.
9.Realization of Revenue
Revenue is recorded at the time goods or services are sold whether on credit or cash.
10.Unit of Measurment
Business transactions are stated in numbers that have common value;
common unit of measurement