ACCOUNTING ENTITY ASSUMPTION Definition

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ACCOUNTING ENTITY ASSUMPTION states that a business is a separate legal entity from the owner. In the accounts the business' monetary transactions are recorded only.

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OVERSOLD is the state of the market when much more selling occurs than is warranted by market conditions. If investors and speculators sell large amounts of securi­ties, including short sales, over a period of time, at some point the market will become oversold and buying is likely to increase. Depending upon the degree of buying, prices will either stop falling or will rise. A rise in prices under these conditions is known as a technical rally.

CONTRACT REVENUES are the revenues recognized under % of completion method.

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