Comparability
AB
Ability come compare accountancy information of various companies due to the fact that they use the same accountancy principles. (p. 490)
Conceptual FrameworkA coherent system that interrelated objectives and fundamentals that deserve to lead to continuous standards. (p. 489)
ConservatismThe constraint of choosing an accounting method, as soon as in doubt, that will the very least likely overstate assets and net income. (p. 501)
ConsistencyUse the the same accounting principles and also methods native year come year within a company. (p. 491)
Cost PrincipleThe principle that assets must be taped at their historical cost. (p. 499)
Economic entity AssumptionThe 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 StatementsDefinitions of simple terms provided in accounting. (p. 491)
Full Disclosure PrincipleThe 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 AssumptionThe presumption that the companies will proceed in operation long sufficient to carry out its present objectives and commitments. (p. 493)
Installment methodA 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 PrincipleThe rule that prices should bematched with revenues in the duration when efforts are expended to create revenues. (p. 497)
MaterialityThe 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 AssumptionThe 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 MethodA 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)
RelevanceThe quality of info that shows the info makes a distinction in a decision. (p. 490)
ReliabilityThe quality of details that offers assurance that details is cost-free of error and bias. (p. 490)
Revenue recognition PrincipleThe 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 AssumptionThe presumption that the financial life that a company can be split into fabricated time periods.


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(p. 493)
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