OBJECTIVITY PRINCIPLE Definition

Bookmark and Share

OBJECTIVITY PRINCIPLE states that accounting will be recorded on the basis of objective evidence. Objective evidence means that different people looking at the evidence will arrive at the same values for the transaction. Simply put, this means that accounting entries will be based on fact and not on personal opinion or feelings.

Learn new Accounting Terms

CORPORATION is a type of business organization chartered by a state and given many of the legal rights as a separate entity.

DEBT SECURITY is a security representing a loan given by an investor to an issuer. In return for the loan, the issuer promises to pay interest and to repay the debt on a specified date. Debt security issuers may include corporations, municipalities, the federal government, or a federal agency. See CONVERTIBLE and CONVERTIBLE DEBT.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.