Students will identify where in the accounting cycle each of the following nine concepts can be found or occurs. Business Entity: The finances of the business should be kept separate and apart from the personal finances of the business owner. Going Concern: Financial statements are prepared under the assumption the business intends to "stay in business" for the foreseeable future. Full Disclosure: Financial statements are complete and contain all relevant information. Objective Evidence: The business activity captured in financial records is backed up by proof in the form of verifiable source documents. Matching Principle: Revenue from business operations and the expenses incurred to generate that revenue are recorded in the same accounting period. Historical Cost: The financial records report the actual amount paid by the business. Revenue Recognition: Revenue is recorded when it is earned, at the time of sale. Consistent Reporting: The same methods are used to prepare financial reports in each accounting period. Accounting Period: The process of financial activities that are completed to produce financial records occur in a specific and distinct time period