Accounting Entity

Accounting Entity - Accounting Entity Every economic entity...

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Accounting Entity Every economic entity can be separately identified and accounted for. Going Concern Concept The presumption that the entity will continue to operate in the future—it’s not being liquidated. Unit of Measurement Only transactions denominated in dollars are recorded in the accounting records. Cost Principle Transactions are recorded at their original cost to the entity as measured in dollars. Objectivity The accountants’ desire to have a given transaction recorded in the same way in all situations. Accounting Period The period of time selected for reporting results of operations and changes in financial position. Matching Concept All expenses incurred to generate that period’s revenues be deducted from revenues earned. Accrual Accounting Recognize revenue at the point of sale and recognize expenses when incurred, even though the cash receipt or payment occurs at another time. Consistency
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Accounting Entity - Accounting Entity Every economic entity...

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