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Accounting Principles and Reporting Standards FLASHCARDS

Accounting Principles and Reporting Standards FLASHCARDS. Historical cost principle. Historical cost principle. The principle that requires assets to be recorded at their cost at the time they are acquired. Periodicity of income assumption. Periodicity of income assumption.

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Accounting Principles and Reporting Standards FLASHCARDS

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  1. Accounting Principles and Reporting StandardsFLASHCARDS

  2. Historical cost principle Historical cost principle The principle that requires assets to be recorded at their cost at the time they are acquired

  3. Periodicity of income assumption Periodicity of income assumption The concept that income should be reported in certain time periods

  4. Qualitative characteristics Qualitative characteristics Traits necessary for credible financial statements: usefulness, relevance, reliability, verifiability, neutrality, understandability, timeliness, comparability, and completeness

  5. Recognition Recognition The determination of the period in which to record a business transaction

  6. Separate entity assumption Separate entity assumption The concept that a business is separate from its owners; the concept of keeping a firm's financial records separate from the owner's personal financial records

  7. For additional reinforcement of accounting terms, visit the crossword puzzle on this Web site.

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