A basic accounting concept that requires that all relevant information be presented in an unbiased, understandable, and timely manner.
generally accepted accounting principles
generally accepted accounting principles (GAAP)
Accounting standards recognized by the accounting profession as required in the preparation of financial statements for external users. Currently, the FASB is the principal issuer of generally accepted accounting principles.
general-purpose financial statements
A balance sheet, income statement, and statement of cash flows.
An entity that is expected to continue in existence for the foreseeable future.
Governmental Accounting Standards Board
Governmental Accounting Standards Board (GASB)
An independent private organization responsible for establishing standards in state and local governmental areas.
The cash equivalent price of goods or services at the date of acquisition.
Internal Revenue Service
Internal Revenue Service (IRS)
U.S. government agency responsible for administering U.S. income tax rules.
International Accounting Standards Board
International Accounting Standards Board (IASB)
International group, based in London, representing accounting bodies in over 100 countries formed to develop accounting standards that can serve as the basis for harmonizing conflicting national standards.
Owners and potential owners of a company.
The activity associated with financial reporting for internal users.
An important constraint underlying the reporting of accounting information; it relates to how large an item is in terms of dollar amount. Accounting standards do not need to be applied to items that are considered to be immaterial.
net realizable value
The amount of cash expected to be received from the conversion of assets in the normal course of business.