Historical cost principle

Going concern assumption

Expense recognition principle

Ability to easily evaluate one company's results relative to another's.

Requirement that a company will continue to operate for the foreseeable future.

The judgment c$$ncerning whether an item's size is large enough to matter to decision$-$

makers.

The reporting of all information that would make a difference to financial statement

users.

The practice of preparing financial statements at regular intervals.

The quality of information that indicates the information makes a difference in a

decision.

A belief that items should be reported on the balance sheet at the price that was paid

to acquire them.

A company's use of the same accounting principles and methods from year to year.

Tracing accounting events to particular companies.

The desire to minimize bias in financial statements.

Reporting only those things that can be measured in monetary units.

Dictates that efforts $($expenses$)$ be recognized in the period in which a company uses

assets or incurs liabilities to generate results $($revenues$).$