| AB | |
| Ability come compare accountancy information of various companies due to the fact that they use the same accountancy principles. (p. 490) | |
| Conceptual Framework | A coherent system that interrelated objectives and fundamentals that deserve to lead to continuous standards. (p. 489) |
| Conservatism | The constraint of choosing an accounting method, as soon as in doubt, that will the very least likely overstate assets and net income. (p. 501) |
| Consistency | Use the the same accounting principles and also methods native year come year within a company. (p. 491) |
| Cost Principle | The principle that assets must be taped at their historical cost. (p. 499) |
| Economic entity Assumption | The presumption that the activities of an economic entity be kept separate from the tasks of the owner and of all various other entities. (p. 493) |
| Elements of jae won Statements | Definitions of simple terms provided in accounting. (p. 491) |
| Full Disclosure Principle | The principle that circumstances and also events that make a distinction to financial declare users must be disclosed. (p. 498) |
| Generally Accepted audit Principles (GAAP) | A collection of rules and practices, having substantial authoritative support, that are well-known as a general guide for financial report purposes. (p. 488) |
| Going worry Assumption | The presumption that the companies will proceed in operation long sufficient to carry out its present objectives and commitments. (p. 493) |
| Installment method | A method of recognizing revenue using the cvash basis; every cash collection consists of a partial recovery of price of products sold and also partial gross profit from the sale. (p. 496) |
| International audit Standards Committee (IASC) | An bookkeeping organization whose purpose is to formulate and also publish international bookkeeping standards and also to encourage their accept worldwide. (p. 503) |
| Matching Principle | The rule that prices should bematched with revenues in the duration when efforts are expended to create revenues. (p. 497) |
| Materiality | The constraint of identify if an object is important sufficient to likely affect the decision of a reasonable prudent investor or creditor. (p. 500) |
| Monetary Unit Assumption | The assumption that only transaction data capable of being expressed in monetary terms need to be consisted of in bookkeeping records. (p. 493) |
| Percentage-of-Completion Method | A an approach of recognizing revenue and income top top a construction projecton the communication of expenses incurred during the period to the full estimated costs for the whole project. (p. 495) |
| Relevance | The quality of info that shows the info makes a distinction in a decision. (p. 490) |
| Reliability | The quality of details that offers assurance that details is cost-free of error and bias. (p. 490) |
| Revenue recognition Principle | The principle that revenue must be known in the accounting period in which the is deserve (generally at the point of sale). (p. 494) |
| Time duration Assumption | The presumption that the financial life that a company can be split into fabricated time periods. You are watching: A company using the same accounting principles from year to year is an application of See more: Margot Robbie Unicorn Dress To 'Suicide Squad', Margot Robbie'S Unicorn Dress Is Straight (p. 493) |
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