1. GAAPS Identify the GAPP for each definition. Use the word list provided. Definition Revenue will be recorded in the books at the time the transaction is completed, not necessarily when cash is received. Items are recorded in the books at the price paid by the purchaser, and do not change from their original value. Costs related to income earned must be recorded in the same accounting period as the revenue it u enerated. All information that affects the interpretation of a company's financial statements must be included with those statements. Items that do not affect the ledger accounts directly should appear in footnotes to the financial statements. Accounting takes place over specific fiscal periods of fixed length, so as to allow for comparisons and anal sis from ear to ear. Accounting must be done on the basis of objective evidence. Different people looking at the same evidence will arrive at the same values for the transaction if ou've followed this uurincile. Accounting for a business should be fair and reasonable, and evaluations, opinions and estimates should be done in such a way that they neither overstate nor understate the affairs of the business. Accounting for a business or organization must be kept separate from the personal affairs of its owner or an other or anization. Accountants must use GAAPs except when doing so would be prohibitively expensive, difficult, and would make little significant difference in the final reported results of the business. Accountants must apply the same methods and procedures from period to period. Any changes must be clearl exlained on the financial statements. l' C! A business will continue to operate unless it is known that such is not the case. l' H Business Entity Concept Conservatism Consistency Continuing Concern! Going Concern Cost Principle Full Disclosure Matching Principle Materiality Objectivity Principle Revenue Recognition Time Period Concept