Chapter 5, Problem 1EA

The lettered items that follow represent a classification scheme for the concepts of financial accounting. Match each numbered term in the list that follows with the letter of the category in which it belongs.

1. a. Qualitative characteristics
2. b. Financial statements
3. c. Objective of accounting information
4. d. Accounting measurement considerations
5. e. Accounting processing considerations
6. f. Decision makers (users of accounting information)
7. g. Accounting conventions
8. h. Business activities or entities relevant to accounting measurement
9. 1. Conservatism
10. 2. Verifiability
11. 3. Statement of cash flows
12. 4. Materiality
13. 5. Faithful representation
14. 6. Recognition
15. 7. Cost-benefit
16. 8. Predictive value
17. 9. Business transactions
18. 10. Consistency
19. 11. Full disclosure
20. 12. Furnishing information that is useful to investors and creditors
21. 13. Specific business entities
22. 14. Classification
23. 15. Management
24. 16. Neutrality
25. 17. Internal accounting control
26. 18. Valuation
27. 19. Investors
28. 20. Completeness
29. 21. Relevance
30. 22. Furnishing information that is useful in assessing cash flow prospects