Answer a questions from the case study that i have already from my professor
rere611758
gaap_7_princeples.pptxGAAP
Going Concern
In valuation of the assets, it is assumed the organization will continue to operate.
Conservatism
Anticipate possible losses do not assume possible gains.
Matching
Expenses should be recorded in the same period as the revenues that caused the expenses to be generated.
GAAP
Cost
The cost of an item was what was paid to acquire it.
Objective Evidence
Financial reports must be based on evidence that reasonable people could agree on.
Historical cost vs. market value vs. replacement cost.
GAAP
Materiality
Insignificant errors may be ignored.
Significance often based on decision making ability of the users of financial reports.
Consistency
Any change in accounting practices must be disclosed.
GAAP
Full Disclosure
Information required for a fair representation must be disclosed in the notes to the financial statements.
