Acct. Review

Only the transactions expressed in money are included in accounting records

This can be separately identified and accounted for

Events can be identified with a particular unit of accountability

allows the business to be divided into artificial time periods that are useful for reporting

assumes the business will remain in operation for the foreseeable picture

Is the rationale for why plant assets are not reported at liquidation value

Indicates that personal and business record-keeping should be separately maintained.

Assumes that the dollar is the "measuring stick" used to report on financial performance.

Separates financial information into time periods for reporting purposes.

Measurement basis used when a reliable estimate of fair value is not available.

Dictates that companies should disclose all circumstances and events that make a difference to financial statement users.

requires assets to be recorded at original cost because of the amount is verifiable

requires assets and liabilities should be reported at fair value

requires all circumstances and events that would make a difference to financial statement users should be disclosed