Accounting Exam

GAAPS

100

Business Entity Concept

The accounting for a business must be kept separate from the personal affairs of it's owner(s), or from any other business. 

200

Liabilities are to be listed on the balance sheet in their order of payment.

Maturity Date Rule

300

Accounting for a business should be fair and reasonable. Attempts should be made to neither overstate nor understate the affairs of the business or the results of operation.

The Principle of Conservation

400

The Revenue Recognition Convention

Revenue is recognized when it is earned, not necessarily when it is received.

500

Accounting takes place over specific time periods known as fiscal periods. Fiscal periods are of equal length, and are used when measuring the financial progress of a business.

The Time Period Concept

GAAPS

100

Cost Principle

Assets must be recorded at their cost price.This is the figure that appears on the source document for the transaction.

200

Accountants must follow GAAPs except when to do so would be expensive or difficult and not following GAAPs would not lead to significant misstatement or results. 

Materialize Principe