Listed below are several information characteristics and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application. (Items a through k may be used more than once or not at all.) Economic entity assumption g. Matching principle Going concern assumption h. Full disclosure principle Monetary unit assumption i. Relevance characteristic Periodicity assumption j. Reliability characteristic Historical cost principle k. Consistency characteristic Revenue recognition principle ____ 1. Stable-dollar assumption (do not use historical cost principle). ____ 2. Earning process completed and realized or realizable. ____ 3. Presentation of error-free information with representational faithfulness. ____ 4. Yearly financial reports. ____ 5. Accruals and deferrals in the adjusting and closing process. (Do not use going concern.) ____ 6. Useful standard measuring unit for business transactions. ____ 7. Notes as part of the necessary information to a fair presentation. ____ 8. Affairs of the business distinguished from those of its owners. ____ 9. Business enterprises assumed to have a long life. ____ 10. Valuing assets at amounts originally paid for them.
Listed below are several information characteristics and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application. (Items a through k may be used more than once or not at all.)
- Economic entity assumption g. Matching principle
- Going concern assumption h. Full disclosure principle
- Monetary unit assumption i. Relevance characteristic
- Periodicity assumption j. Reliability characteristic
- Historical cost principle k. Consistency characteristic
- Revenue recognition principle
____ 1. Stable-dollar assumption (do not use historical cost principle).
____ 2. Earning process completed and realized or realizable.
____ 3. Presentation of error-free information with representational faithfulness.
____ 4. Yearly financial reports.
____ 5. Accruals and deferrals in the adjusting and closing process. (Do not use going concern.)
____ 6. Useful standard measuring unit for business transactions.
____ 7. Notes as part of the necessary information to a fair presentation.
____ 8. Affairs of the business distinguished from those of its owners.
____ 9. Business enterprises assumed to have a long life.
____ 10. Valuing assets at amounts originally paid for them.
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