Accountingchap02.pptVIP

Slide 1-## Outlines Basic concepts The balance sheet Ratios Balance sheet changes Concluding comment Basic Concepts Statements of Financial Accounting Concepts Adopted by FASB Conceptual criteria to help resolve future accounting issues. Not GAAP. 11 concepts in text. 1-5 covered in this chapter. 6-11 in next chapter. Accounting period Conservatism Realization Matching Consistency Materiality Money Measurement Case 1-2 Baron Coburg Accounting records are recorded in monetary terms at value at time transaction is recorded. Severe limitation. Can’t be valued, can’t be recorded; e.g. president’s