Chapter15Terms

Chapter15Terms - Comparability Ability to compare...

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Comparability Ability to compare accounting information of different companies because they use the same accounting principles. Conceptual framework A coherent system of interrelated objectives and fundamentals that can lead to consistent standards. Consistency Use of the same accounting principles and methods from year to year within a company. Cost principle The principle that assets should be recorded at their historical cost. Cost-benefit constraint The costs of providing the information must be weighed against the benefits that can be derived from using it. Economic entity assumption The assumption that the activities of an economic entity be kept separate from the activities of the owner and of all other entities. Elements of financial statements Definitions of basic terms used in accounting. Expense recognition (matching) principle The principle that expenses should be matched with revenues in the period when efforts are expended to generate revenues. Fair value principle
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Chapter15Terms - Comparability Ability to compare...

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