accounting principles Flashcards
(6 cards)
1
Q
what is accounting entity
A
- business is seperate from the owner
- only business transactions recorded
2
Q
what is monetary
A
only financial transactions in dollars are recorded
3
Q
what is historical cost
A
record assets at purchased price
4
Q
what is materiality
A
only info that affects decision making is recorded in detail
5
Q
what is accounting period
A
time frame for reports (eg monthly, annually)
6
Q
what is going concern
A
assumes business will continue unless stated otherwise
