Situation\ Record expenses incurred to generate the revenue reported.\ Each business is accounted for separately from its owner or owners.\ Revenue is recorded when products and services are delivered.\ Information is based on actual costs incurred in transactions.\ Financial statement details that would impact decisions are often disclosed in the footnotes.\ A business is accounted for separately from other business entities and its owner.

Situation 1. Record expenses incurred to generate the revenue reported. 2. Each business is accounted for separately from its owner or owners. 3. Revenue is recorded when products and services are delivered. 4. Information is based on actual costs incurred in transactions. 5. Financial statement details that would impact decisions are often disclosed in the footnotes. 6. A business is accounted for separately from other business entities and its owner