Description Principle/Assumption

1. A company reports details behind financial statements that would impact users’ decisions.
2. Financial statements reflect the assumption that the business continues operating.
3. A company records the expenses incurred to generate the revenues reported.
4. Concepts, assumptions, and guidelines for preparing financial statements.
5. Each business is accounted for separately from its owner or owners.
6. Revenue is recorded when products and services are delivered.
7. Detailed rules used in reporting events and transactions.
8. Information is based on actual costs incurred in transactions.

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Dryomys Dryomys · Answer 1 · 2019-09-13T11:39:44+02:00

Answer:

1. A company reports details behind financial statements that would impact users’ decisions - Full Disclosure Principle

2. Financial statements reflect the assumption that the business continues operating - Going Concern Assumption

3. A company records the expenses incurred to generate the revenues reported - Matching Principle

4. Concepts, assumptions, and guidelines for preparing financial statements - General Accounting Principle

5. Each business is accounted for separately from its owner or owners - Business Entity Assumption

6. Revenue is recorded when products and services are delivered - Revenue Recognition Principle

7. Detailed rules used in reporting events and transactions - Specific Accounting Principle

8. Information is based on actual costs incurred in transactions - Cost Principle