FASB Flashcards
1
Q
What is recognition?
A
accounting concept that indicates when an item is recorded on the financial statement.
2
Q
What is realization?
A
An economic concept that indicates when cash is paid or received.
3
Q
What three aspects does GAAP address?
A
Recognition, measurement, and disclosure.
4
Q
What is measurement?
A
The dollar amount assigned to an item on the Financial statement.
5
Q
What is disclosure?
A
Items that are not reported in the financial statement are reported in the footnotes fo the financials to give the full picture.
