Number Description 1 2 3 4 5 6 7 8 A company reports details behind financial statements that would impact users' decisions. Financial statements reflect the assumption that the business continues operating. A company records the expenses incurred to generate the revenues reported. We can express transactions and events in monetary, or money, units Every business is accounted for separately from its owner or owners. Revenue is recorded only when the earnings process is complete. Principle or assumption The life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods. Information is based on actual costs incurred in transactions. principle

\begin{tabular}{|l|l|l|} \hline Number & Description & Principle or assumption \\ \hline 1 & Acompanyreportsdetailsbehindfinancialstatementsthatwouldimpactusersdecisions. & \\ \hline 2 & Financialstatementsreflecttheassumptionthatthebusinesscontinuesoperating. & \\ \hline 3 & Acompanyrecordstheexpensesincurredtogeneratetherevenuesreported. & \\ \hline 4 & Wecanexpresstransactionsandeventsinmonetary,ormoney,unitsoverybusinessisaccountedforseparatelyfromitsownerowners. & R inci Ple \\ \hline 5 & Revenueisrecordedonlywhentheearningsprocessiscomplete. \\ \hline 6 & Thelifeofacompanycanbedividedintotimeperiods,suchasmonthsandyears,andthatusefulreportscanbepreparedforthoseperiods. & Informationisbasedonactualcostsincurredintransactions. \\ \hline 8 \end{tabular}