Match the correct term with its definition.
Match the correct term with its definition.
A. Cost principle
i. if uncertainty in a potential financial estimate, a company should err on the side of
caution and report the most conservative amount
B. Full disclosure
principle
ii. also known as the historical cost principle, states that everything the company owns
or controls (assets) must be recorded at their value at the date of acquisition
C. Separate
entity concept
iii. (also referred to as the matching principle) matches expenses with associated
revenues in the period in which the revenues were generated
D. Monetary
measurement
concept
iv. business must report any business activities that could affect what is reported on
the financial statements
E. Conservatism
v. system of using a monetary unit by which to value the transaction, such as the US
dollar
F. Revenue
recognition
principle
vi. period of time in which you performed the service or gave the customer the
product is the period in which revenue is recognized
G. Expense
recognition
principle
vii. business may only report activities on financial statements that are specifically
related to company operations, not those activities that affect the owner personally
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