STATEMENT OF THE ACCOUNTING PRINCIPLES BOARD
4
Basic Concepts and Accounting Principles Underlying Financial Statements of Business Enterprises
CONTENTS
Paragraph
Chapter Numbers
1 PURPOSE AND NATURE OF THE
STATEMENT 1-8
Purpose of the Statement 1-2
Nature of the Statement 3-7
Terminology 8
2 SUMMARY OF THE STATEMENT 9-39
Financial Statements 10-16
The Environment of Financial Accounting 17-20 Objectives of Financial Accounting and
Financial Statements 21-24 Basic Features and Basic Elements of Financial
Accounting 25-26
Generally Accepted Accounting Principles 27-31
Dynamic Nature of Financial Accounting 32 Characteristics and Limitations of Financial
Accounting and Financial Statements 33-35
Use of Financial Accounting Information 36-39
Issued by the Accounting Principles Board of the American Institute of Certified Public Accountants
COPYRIGHT 1970 BY THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS, INC. 666 FIFTH AVENUE, NEW YORK, NEW YORK 10019
OCTOBER 1970