statement of asb no. 4

STATEMENT OF THE ACCOUNTING PRINCIPLES BOARD 4 Basic Concepts and Accounting Principles Underlying Financial Statements of Business Enterprises

C O N T E N T S 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 1 9 7 0 BY THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS, INC. 6 6 6 F I F T H A V E N U E , N E W Y O R K , N E W YORK 1 0 0 1 9

OCTOBER 1970