| A | B |
|---|
| Accounting Period Cycle | Changes in financial information are reported for a specific period of time in the form of financial statements. |
| Adequate Disclosure | Financial statements contain all information necessary to understand a business's financial condition. |
| Business Entity | Financial information is recorded and reported separately from owner's personal financial financial information. |
| Consistent Reporting | The same accounting procedures are followed int eh same way in each accounting period. |
| Going Concern | Financial statements are prepared with the expectation that a business will remain in operation indefinitely. |
| Historical Cost | The actual amount paid for merchandise or other items bought is recorded. |
| Matching Expenses with Revenue | Revenue from business activities and expenses associated with earning that revenue are recroded in the same accounting period. |
| Objective Evidence | A source document is prepared for each transaction. |
| Realization of Revenue | Revenue is recorded at the time goods or services are sold. |
| Unit of Measurement | Business transactions are stated in numbers that have common values; that is, using common unit of measurement. |
