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Permits the expensing of all expenditures for supplies that do not exceed a specified amount. Permits the use of market value for the valuation of
Permits the expensing of all expenditures for supplies that do not exceed a specified amount.
Permits the use of market value for the valuation of assets in certain situations.
Allocates expenses to revenues in the correct period.
Ensures that all companies provide sufficient information about such items as the amount of sales revenue.
Requires that changes in the market value, after an asset is purchased, are not
recorded in the accounts.
The reason that equipment is not reported at liquidation value.
Separates the reporting of financial information into specified time intervals.
Assumes that the dollar is the "measuring stick" used for financial reporting.
The assumption that states that the activity of a business should be kept separate from its owners.
LIST OF PRINCIPLES AND MODIFYING CONVENTIONS UNDERLYING
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
Going concern assumption
G
Revenue recognition principle
Economic entity assumption
H
Expense recognition principle
Monetary unit assumption
I
Full disclosure principle
D
Periodicity assumption
J
Costbenefit constraint
E
Measurement principlehistorical cost
Measurement principlefair value
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