Numbers and descriptions match what really existed or happened. Economic entity assumption Kodak Company's income is projected to be lower than in previous years, so a switch from accelerated depreciation to straight-line depreciation is made in this year. Going concern assumption Presentation of timely information with predictive and confirmatory value. Monetary unit assumption Stable dollar assumption (do not use historical cost principle). Consi
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Numbers and descriptions match what really existed or happened.
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Economic entity assumption
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Kodak Company's income is projected to be lower than in previous years, so a switch from accelerated
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Going concern assumption
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Presentation of timely information with predictive and confirmatory value.
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Monetary unit assumption
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Stable dollar assumption (do not use historical cost principle).
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Consistency characteristic
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The president of Selectron Corporation believes it is not necessary to report financial information on a yearly basis. The president believes that financial information should only be disclosed when significant new information is available related to the company's operations.
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Periodicity assumption
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The performance obligation is satisfied.
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Faithful representation characteristic
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Walgreen Pharmaceutical Corporation reports information about pending lawsuits in the notes to the financial statements.
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Historical cost principle
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Berk Technologies, Inc. recognizes depreciation expense for equipment over a five-year period when the equipment helps the company earn revenue.
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Relevance Characteristic
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Affairs of the business distinguished from those of it's owners.
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Revenue recognition principle
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Valuing assets at amounts originally paid for them.
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Full disclosure principle – or-
Expense recognition principle |
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