Accounting consepts
Adequate Disclosure
Business Entity
Matching Expenses with Revenue
Realisation of Revenue
A business' financial information is recorded and reported separately from the owner's personal financial information
Materiality
Some types of expenditure are less important in a business contex than others.
Revenue from business transactions is recorded at the time goods or services are sold
Revenue from business activities and expenses associated with earning that revenue are recorded in the same accounting period
Financial statements should contain all information necessary for a reader to understand a business' financial condition
Consistent Reporting
In the preparation of financial statements? the same accounting concepts are applied in the same way in each accounting period
Historical Cost
The actual amount paid or received is the amount recorded in accounting records
Unit of Measurement
All business transactions are recorded ia a common unit of measurement - the dollar
Objective Evidence
Each transaction is described by a business document that proves the transaction did occur
Accounting Period Cycle
Changes in finansial information are reported for a specific period of time in the form of financial statments.