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Economic Entity Assumption |
Indicates that personal and business record-keeping should be separately maintained |
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Expense Recognition Principle |
Requires recognition of expenses in the same period as related revenues |
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Monetary Unit Assumption |
Assumes that the dollar is the measuring stick used to report on financial performance |
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Periodicity Assumption |
Separates financial information into time periods for reporting purposes |
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Historical Cost Principle |
Indicates that fair value changes subsequent to purchase are not record in the accounts |
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Materiality |
Requires that accounting standards be followed for all items of significant size |
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Full Disclosure Principle |
Ensures that all relevant financial information is reported |
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Going Concern Assumption |
Rationale for why plant asses are not reported at liquidation value |
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