| A | B |
|---|
| Treasury Stock | A corporation’s own stock that has been issued and reacquired. |
| Accounting Period Cycle | Financial statements are prepared at the end of each fiscal period |
| Bond Issue | All bonds representing the total amount of a loan. |
| Bond Sinking Fund | An amount set aside to pay a bond issue when it is due. |
| Discount on Capital Stock | An amount less than par or stated value at which stock is sold. |
| Term Bonds | Bonds that all mature on the same date. |
| Serial Bonds | Portions of a bond issue that mature on different dates. |
| Trustee | A person or institution, usually a bank, given legal authorization to administer property for the benefit of property owners. |
| Retiring a Bond Issue | Paying the amounts owned to bond holders for a bond issue. |
| Business Entity | Financial information is recorded and reported separately from the owner’s personal financial information |
| Matching Expenses | Revenue from business activities and expenses associated with earning that revenue are recorded in the same fiscal period |
| Adequate Disclosure | Financial statements contain |
| Unit of Measurement | Business transactions are stated in numbers that have common values; that is, using a common unit of measurement |
| Realization of Revenue | Revenue is recorded at the time goods and services are sold |
| Objective Evidence | A source document is needed for every transaction |
| Consistent Reporting | Transactions must be recorded the same way from one fiscal period to another |
| Historical Cost | The price paid for items is the price recorded in accounting transactions |
| Going Concern | Businesses expect to remain in business indefinitely |
| Materiality | Business activities creating dollar amounts large enough to affect business decisions should be recorded |
| Bond | A printed, long-term promise to pay a specified amount on a specified date and to pay interest at stated intervals. |
