chapter 1
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9 terms
Terms | Definitions |
|---|---|
 Measurement Principle | Accounting information is based on cost with potential subsequent adjustments to fair value |
| Owner Withdrawals | 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. |
| Owner, Capital | 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 |
| Return | 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. |
| Going-concern Assumptions | Principle that prescribes financial statements to reflect the assumption that the business will continue operating. |
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