Acc-100 section 1 additional

Accounting Entity

every economic entity can be separately identified and accounted for

Going Concern Concept

an entity will continue to operate (not be liquidated)

Unit of Measurement

only transactions in dollars are recorded in accounting records

Cost Principle

transactions are recorded at their original cost in dollars

Accounting Period

period of time for reporting results of operations and changes in financial position

Accrual Accounting

Recognizes revenue and expenses when they happened regardless of when the payment occurs

consistency

provides meaningful trend comparison over the years

materiality

benefit of increased accuracy should outweigh the cost of increased accuracy

conservatism

judgments that result in lower profits and assets