GAAP CONCEPTS - Materiality – whole impact on financial...

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GAAP CONCEPTS, CHAPTERS 1-4 Cost Principle – assets are recorded at cost. Cost-Benefit Rule - benefit more than cost to buy it. Objectivity – Financial statements are reviewed objectively by independent CPA certified public accountant Comparability – 2 consecutive financial statements Full Disclosure – its footnotes for all items to explain financial statements. Consistency – each must be kept from year to year or month to month
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Unformatted text preview: Materiality – whole impact on financial statement by accountants judgment call Revenue Realization – realize revenue when earned not necessarily when cash received Matching Principle – match expense used up in process of making revenue not necessarily when cash paid Conservatism – record accounts at conservative value = equip less AD = net carrying value...
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This note was uploaded on 09/15/2011 for the course ACCT 101 taught by Professor Lunday during the Spring '09 term at Oklahoma State.

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GAAP CONCEPTS - Materiality – whole impact on financial...

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