| A | B |
|---|
| GAAP | Generally Accepted Accounting Principles |
| FASB | Financial Accounting Standards Board |
| Economic Entity | Separate BUSINESS from PERSONAL |
| Monetary Unit | Accounting is in US Dollars--and don't account for inflation |
| Time Period | State whether you're talking about a week, a month, a qtr, a year, etc. |
| Cost | Original/Historic cost--don't adjust when value goes up/down |
| Full Disclosure | The WHOLE truth |
| Going Concern | The company will stay in business for the long haul |
| Matching | ACCRUAL!!! Expenses go with the revenue they earned. Keep things in the right fiscal period |
| Revenue Recognition | Record sales when you sell, not when you get the cash (Accrual vs cash) |
| Materiality | $150 isn't a big deal to a big Co. but it is to a little one so they would do some entries differently |
| Conservatism | Given two choices, pick the one that shows less income or assets. Don't overstate |
