Accounting information is based on cost with potential subsequent adjustments to fair value
Assets pulled out of the business by the owner.
Business Entity Assumption
Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.
Account showing the owner's claim on company assets; equals owner investments plus net income (or less net loss) minus owner withdrawals since the company's inception. Also called Equity.
Time Period Assumptions
Assumption that an organization's activities can be divided into specific time periods such as months, quarters, or years
Monies (or sums of money) received from an investment; often in percent form.
Financial Accounting Standards Board
Independent group of full-time members responsible for setting accounting rules.
Monetary Unit Assumption
Principle that assumes transactions and events can be expressed in money units.
Principle that prescribes financial statements to reflect the assumption that the business will continue operating.