Accounting Principles
Accounting Principles
Compatibility Principle - ANS-Information system principle that prescribes an accounting
system to conform with a company's activities, personnel, and structure.
Conservatism Constraint - ANS-Principle that prescribes the less optimistic estimate
when two estimates are about equally likely.
Consistency Concept - ANS-Principle that prescribes use of the same accounting
methods over time so that financial statements are comparable across periods.
Control Principle - ANS-Information system principle that prescribes an accounting
system to aid managers in controlling and monitoring business activities.
Cost-benefit Principle - ANS-Information system principle that prescribes the benefits
from an activity in an accounting system to outweigh the costs of that activity.
Cost-benefit Constraint - ANS-The notion that the benefit of a disclosure exceeds the
cost of the disclosure.
Cost Principle - ANS-Accounting principle that prescribes financial statement
information to be based on actual costs incurred in business transactions.
Flexibility Principle - ANS-Information system principle that prescribes an accounting
system be able to adapt to changes in the company, its operations, and needs of
decision makers.
Full Disclosure Principle - ANS-Principle that prescribes financial statements (including
notes) to report all relevant information about an entity's operations and financial
condition.
Going-concern Assumption - ANS-Principle that prescribes financial statements to
reflect the assumption that the business will continue operating.
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Accounting Principles
Compatibility Principle - ANS-Information system principle that prescribes an accounting
system to conform with a company's activities, personnel, and structure.
Conservatism Constraint - ANS-Principle that prescribes the less optimistic estimate
when two estimates are about equally likely.
Consistency Concept - ANS-Principle that prescribes use of the same accounting
methods over time so that financial statements are comparable across periods.
Control Principle - ANS-Information system principle that prescribes an accounting
system to aid managers in controlling and monitoring business activities.
Cost-benefit Principle - ANS-Information system principle that prescribes the benefits
from an activity in an accounting system to outweigh the costs of that activity.
Cost-benefit Constraint - ANS-The notion that the benefit of a disclosure exceeds the
cost of the disclosure.
Cost Principle - ANS-Accounting principle that prescribes financial statement
information to be based on actual costs incurred in business transactions.
Flexibility Principle - ANS-Information system principle that prescribes an accounting
system be able to adapt to changes in the company, its operations, and needs of
decision makers.
Full Disclosure Principle - ANS-Principle that prescribes financial statements (including
notes) to report all relevant information about an entity's operations and financial
condition.
Going-concern Assumption - ANS-Principle that prescribes financial statements to
reflect the assumption that the business will continue operating.
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