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Accounting period operating cycle of a firm

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GAAP
Authoritative rules, practices, and conventions meant to provide both
broad guidelines and detailed procedures for preparing financial
statements and handling specific accounting situations.
Entity concept
In accounting, the separate entity concept treats a business as distinct and separate from its owners. It is
necessary to record the business's transactions separately, to distinguish them from the owner's personal
transactions
Going concern
Currently operating business that is expected to continue to function as such and remain viable in the
foreseeable future.
Accounting period
Accounting concept that the operating cycle of a firm can be divided into distinct accounting
periods (a month or a quarter, for example) of relatively short lengths for which
accounting information can be collected, matched, and reported in a timely manner.
Stable dollar
Financial statements must b prepared is currency that is stable and has not much fluctuations e-g
dollar
objectivity principle
An accounting principle that states that a company's financial information be based on verifiable data.
COST PRINCIPLE
Accounting concept that goods and services purchased should be recorded at their historical cost and
not at their current market value.

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GAAP Authoritative rules, practices, and conventions meant to provide both broad guidelines and detailed procedures for preparing financial statements and handling specific accounting situations. Entity concept In accounting, the separate entity concept treats a business as distinct and separate from its owners. It is necessary to record the business's transactions separately, to distinguish them from the owner's personal transactions Going concern Currently operating business that is expected to continue to function as such and remain viable in the foreseeable fu ...
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