Accounting period: the annual reporting period (or fiscal year)
Accounting priciples: are fundamentals theories, truths and propositions that serve as the foundation for financial accounting and reporting
Accounting standards: establish the authoritative guidance on how companies should account for and report specific transactions events and arrangments in their financial statements
Accrual accounting: measures the reports and economic effect of a companies transactions evente etc in the periods in which those effects occurred, even if the cash recipt and payment occured in a different period
Accruals: when economic effects are recognized in the current period, even though the cash flows will occur in a later period they are reffered as accurals
Business cycle: is the yearly period from the lowest sales through highest sales and back to lowest sales.
Comparability: of accounting information helps identify and explain similarities and differences between two or more sets of economic facts
Complete representation: provides users with full disclosure of all the information necessary to understand the information being reported, with all necessary facts, descriptions and explanations
Conceptual framework: is a foundation of objectives, concepts, priniciples, and definition that leads to high quality financial accounting standards and the appropriate application in accounting practice. confirmatory value: if it provides feedback to confirm or correct prior prediction and expectations conversatism: is an approach that is taken to avoid overstating net assets and net income when one is uncertain consistency: same methos and principles applied every period continuity assumption (going concern assumption) : is that the company will continue to operate in the future cost constraint: how much it will cost to get all the information to make all the financial