Accounting Principles

__________ accounting focuses on providing information to external users such as investors and creditors.

__________ accounting involves gathering and analyzing information for internal decision-making, such as budgeting and cost analysis.

The basic accounting equation states that Assets = Liabilities + __________.

A __________ is a summary of all financial transactions occurring over a specific period, detailing revenues and expenses.

__________ involves identifying, measuring, and communicating financial information to permit informed judgments and decisions by users of the information.

The __________ principle dictates that transactions should be recorded at their original cost, not at their current market value.

The __________ assumption assumes that a business will continue to operate indefinitely unless there is evidence to the contrary.

__________ are economic resources controlled by a company as a result of past events and expected to provide future benefits.

__________ are obligations of a company to transfer assets or provide services to others in the future.

__________ represents the residual interest in the assets of a company after deducting liabilities, often referred to as net worth.