Concepts
that every business transaction should have double entry in bookkeeping
Duality
a measure of value used in accounting in which the value of an asset on the balance sheet is recorded at its original cost when acquired by the company
Historical cost
this concept states that a business should only record an accounting transaction if it can be expressed in terms of money
Money measurement
a set of guidelines in bookkeeping
Conservatism
the point in time when revenue has been generated
Realization
all situations, circumstances, and events that are relevant to financial statement users have to be disclosed.
Full disclosure
that an organization can report its financial results within certain designated periods of time
Periodicity
the benefits of an accounting system that help produce financial reports and statements should always out weight its associated costs.
Cost-benefits
It makes sure that assets and income are not overstated and liabilities are not understated.
Prudence
that stipulates how and when revenue is to be recognized
Revenue recognition
states that a business entity's finances should be keep separate from those of the owner, partners, shareholders, or related businesses
Business/Economic Entity
those accounting issues that are unique to a specific industry and which are used instead of normal accounting practices and reporting.
Industry practice
A quality of accounting information that facilitates comparing a company's reporting of one accounting period to another
Consistency
that revenues and expenses should be recognized in the same period.
Matching
a company that has the resources needed to continue operating indefinitely until it provides evidence to the contrary
Going Concern
to the relative size of an amount
Materiality