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Accrual basis accounting recognizes revenue when earned and expenses when incurred, regardless of the timing of cash flows. It's relevant for presenting a more accurate picture of a company's financial position.

The conservatism principle advises to report expenses and liabilities as soon as possible, but to only report revenues and assets when you are sure they will occur. Relevance lies in providing a buffer for future losses or uncertain events.

This assumption states that transactions and events are quantifiable in money units. It's relevant as it allows for consistency in the recording and reporting of financial information.

This assumption treats a business as separate from its owner or other business entities, leading to clearer financial statements by preventing intermingling of personal and business transactions.

This principle assumes that the business will continue to operate in the foreseeable future, which justifies deferring some costs. It is relevant in decision-making and in the valuation of assets and liabilities.

This principle requires that all circumstances and events that make a difference to financial statement users must be disclosed. It ensures transparency and aids stakeholders in decision-making.

This principle outlines the conditions under which revenue is recognized and reported. It is relevant because it affects when a company reports income on its earnings statement.

The matching principle directs a company to report an expense on its income statement in the period in which the related revenues are earned. It supports the accuracy of financial statements by aligning expenses with revenues.

The concept that implies only information that would influence the decision of a reasonable person needs to be disclosed. It keeps financial statements free from unnecessary details.

This principle requires companies to account and report based on acquisition costs rather than fair market value for assets and liabilities. It provides a measure of verifiability and objectivity.

This accounting principle asserts that a company should use the same accounting methods through time. This consistency enables comparison of financial statements across periods.

Prudence is a key accounting principle that ensures assets and income are not overstated, and liabilities and expenses are not understated. It embodies a degree of caution when making judgments under conditions of uncertainty.

The objectivity principle states that accounting information and financial reporting should be independent and based on objective evidence. It ensures that financial statements are free from bias.

This principle allows businesses to report their financial performance in a regular, standardized time frame, such as quarterly or annually.

This refers to weighing the cost of providing information against the benefit that users will gain from having the information. It's relevant when considering the practicality and necessity of reporting certain information.

The entity principle requires that a business be treated as a separate entity from its owners or other businesses, particularly for financial reporting purposes.

This convention allows for some leeway in GAAP by acknowledging that some industries have peculiar practices and therefore can disclose information in a manner that is peculiar to the industry.

Recognition is the process of formally recording or incorporating an item into the financial statements of an entity. It involves reporting an item in the income statement or balance sheet when it meets certain criteria.

Measurement in accounting is the process of determining the monetary amounts at which the elements of the financial statements are to be recognized and reported.

In the context of accounting, presentation involves the manner in which financial information is organized and displayed in the financial statements. It influences the readability and comprehension of the financial data provided.

Disclosure in accounting refers to the act of providing financial and other pertinent information through financial statements, notes, and supplementary material. It's essential for transparency and informed decision-making by users.

Comparability is the qualitative characteristic that enables users to identify and understand similarities and differences among items. It's essential for benchmarking and analyzing trends over time.

Verifiability implies that different knowledgeable and independent observers could reach consensus that an event is faithfully represented. It adds credibility to the financial statements.

Timeliness in accounting ensures that information is available to decision-makers before it loses its capacity to influence decisions. It is a balancing factor against other qualitative characteristics like completeness.