ACC-1A Lecture Notes - Lecture 17: Financial Statement, Income Statement, Matching Principle
Document Summary
Economic entity: accountants assume that the financial activities of a business can be separated from the financial activities of the business" owners(s). Time period: accountants assume that economic information can be meaningfully captured and communicated over short period of time. Monetary unit: accountants assume that the dollar is the most effective means to communicate economic activity. Going concern: accountants assume that a company will continue to operate in the foreseeable future. The income statement or to be technically correct, the statement of comprehensive income (sometimes called the profit and loss statement). A revenue is an increase in resources resulting from the sale of goods or the provision of services (or other income). Revenues are recorded according to the revenue recognition principle is the principle that a revenue should be recorded when a resource has been earned and not just when the cash is received.
