Third Level:Recognition and Measurement The FASB sets forth most of these concepts in its Statement of Financial Accounting Concepts No.5, "Recognition and Measurement in Financial Statements of Business Enterprises." ASSUMPTIONS PRINCIPLES CONSTRAINTS 1.Economic entity 1.Historical cost 1.Cost-benefit 2.Going concern 2.Revenue recognition 2.Materiality 3.Monetary unit 3.Matching 3.Industry practice 4.Periodicity 4.Full disclosure 4.Conservatism Chapter 1-16 LO 6 Describe the basic assumptions of accounting
Chapter 1-16 The FASB sets forth most of these concepts in its Statement of Financial Accounting Concepts No. 5, “Recognition and Measurement in Financial Statements of Business Enterprises
The Accounting Information System DONALD E.KIESO JERRY J.WEYGANDT TERRY D.WARFIELD IIII IIT II II Intermediate Chapter 3 Accounting Intermediate Accounting 12th Edition Kieso,Weygandt,and Warfield Chapter 1-17
Chapter 1-17 Intermediate Accounting 12th Edition Kieso, Weygandt, and Warfield
Accounting Information System Accounting Information System The Accounting Cycle 0 Basic terminology ldentification and recording o Debits and credits oJournalizing ●Basic equation o Posting o Financial statements and oTrial balance ownership structure ●Adjusting entries Adjusted trial balance Preparing financial statements ●Closing Post-closing trial balance Reversing entries o Financial statements for Chapter merchandisers 1-18
Chapter 1-18
The Accounting Cycle Illustration 3-6 Transactions 9.Reversing entries 1.Journalization 8.Post-closing trail balance 2.Posting 7.Closing entries 3.Trial balance 6.Financial Statements Work Sheet 4.Adjustments 5.Adjusted trial balance Chapter 1-19 LO 3 Identify steps in the accounting cycle
Chapter 1-19 Transactions 1. Journalization 6. Financial Statements 7. Closing entries 8. Post-closing trail balance 9. Reversing entries 3. Trial balance 2. Posting 5. Adjusted trial balance 4. Adjustments Work Sheet Illustration 3-6
Income Statement and Related Information DONALD E.KIESO.JERRY J.WEYGANDT TERRY D.WARFIELD IIIIIII III I Intermediate Chapter 4 Accounting Intermediate Accounting 12th Edition Kieso,Weygandt,and Warfield Chapter 1-20
Chapter 1-20 Intermediate Accounting 12th Edition Kieso, Weygandt, and Warfield