| 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 the owner's personal financial information |
| Consistent Reporting | The same accounting procedures are followed in the 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 reveneue are recorded 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--dollars, pesos, etc. |
