Financial information is recorded and reported separately from the owner’s personal financial information.
Business Entity
Changes in financial information are reported for a specific period of time in the form of financial statements
Accounting Period Cycle
Financial statements contain all information necessary to understand a business’s financial condition
Full Disclosure
a combination of authoritative standards (set by policy boards) and the commonly accepted ways of recording and reporting accounting information.
GAAP, or Generally Accepted Accounting Principles
Determining that the amount of cash agrees with the balance of the cash account in the accounting records.
Proving cash