Going Concern Principle Assumes that the entity will continue to operate in the foreseeable future. Period Assumption Associates economic activity with time intervals for profit determination and reporting ie. What the Business Owns. Liabilities Are future sacrifices of service potential or future economic obligations - What the Business Owes to Outsiders. The residual of Assets less Liabilities - What the Business Owes to Owners.
Revenue Are inflows or other enhancements, or savings in outflows.
Amounts earned by delivering goods or services. Expenses Are consumptions or losses of service potential or future economic benefits. Amounts incurred in order to deliver goods or services. Summary of the changes in the owner s equity of an entity during a specific period. List of an entity s assets, liabilities and owner s equity at a specific time.