E2-6 (L05,6) (Assumptions, Principles, and Constraint) Presented below are the assumptions, principles, and constraint used in this chapter. prajucze 1. Economic entity assumption 6. Measurement principle (fair value) mant 2. Going concern assumption an to amel gi aahlgy 7. Expense recognition principle 3. Monetary unit assumption dudre woTS n no 4. Periodicity assumption 5. Measurement principle (historical cost) 8. Full disclosure principle 9. Cost constraint ns famuonwol 10. Revenue recognition principle 00 Instructions oerlayonsled orlh no bond Identify by number the accounting assumption, principle, or constraint that describes each situation below. Do not use a number rt.000 more than once. (a) Allocates expenses to revenues in the proper period. (b) Indicates that fair value changes subsequent to purchase are not recorded in the accounts. (Do not use revenue recogni- tion principle.) (c) Ensures that all relevant financial information is reported. loot evor (d) Rationale why plant assets are not reported at liquidation value. (Do not use historical cost principle.) (e) Indicates that personal and business record keeping should be separately maintained. (f) Separates financial information into time periods for reporting purposes. (g) Assumes that the dollar is the "measuring stick" used to report on financial performance. insim
E2-6 (L05,6) (Assumptions, Principles, and Constraint) Presented below are the assumptions, principles, and constraint used in this chapter. prajucze 1. Economic entity assumption 6. Measurement principle (fair value) mant 2. Going concern assumption an to amel gi aahlgy 7. Expense recognition principle 3. Monetary unit assumption dudre woTS n no 4. Periodicity assumption 5. Measurement principle (historical cost) 8. Full disclosure principle 9. Cost constraint ns famuonwol 10. Revenue recognition principle 00 Instructions oerlayonsled orlh no bond Identify by number the accounting assumption, principle, or constraint that describes each situation below. Do not use a number rt.000 more than once. (a) Allocates expenses to revenues in the proper period. (b) Indicates that fair value changes subsequent to purchase are not recorded in the accounts. (Do not use revenue recogni- tion principle.) (c) Ensures that all relevant financial information is reported. loot evor (d) Rationale why plant assets are not reported at liquidation value. (Do not use historical cost principle.) (e) Indicates that personal and business record keeping should be separately maintained. (f) Separates financial information into time periods for reporting purposes. (g) Assumes that the dollar is the "measuring stick" used to report on financial performance. insim
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:E2-6 (L05,6) (Assumptions, Principles, and Constraint) Presented below are the assumptions, principles, and constraint
used in this chapter.
TO
1. Economic entity assumption
6. Measurement principle (fair value)
any7. Expense recognition principle
8. Full disclosure principle
enollourdant
2. Going concern assumption on to amsi mi es
3. Monetary unit assumptiondudue wans or o1Mno
4. Periodicity assumption
5. Measurement principle (historical cost)
9. Cost constraint
ns Iamuoniwol
epeil
10. Revenue recognition principle
Instructions
tt.000.092 foolaonslad ord no
Identify by number the accounting assumption, principle, or constraint that describes each situation below. Do not use a number
more than once.
(a) Allocates expenses to revenues in the proper period.
(b) Indicates that fair value changes subsequent to purchase are not recorded in the accounts. (Do not use revenue recogni-
tion principle.)
(c) Ensures that all relevant financial information is reported.
(d) Rationale why plant assets are not reported at liquidation value. (Do not use historical cost principle.)
(e) Indicates that personal and business record keeping should be separately maintained.
(f) Separates financial information into time periods for reporting purposes.
(g) Assumes that the dollar is the "measuring stick" used to report on financial performance.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education