Reference no: EM133141

Question :

Listed below are various information accounting principles, characteristics, constraints, and assumptions. Match the letter of each with the suitable phrase that states its application. (Items a through L may be used more than once or not at all.)

a. Economic entity supposition g. Matching principle

b. Going concern supposition h. Full disclosure principle

c. Monetary unit statement i. Relevance characteristic

d. Periodicity supposition j. Reliability characteristic

e. Historical cost principle k. Consistency characteristic

f. Revenue recognition principle L. Conservatism

1. Stable-dollar assumption (do not use historical cost principle).

2. Earning process realized and completed or realizable.

3. Presentation of error-free information with representational faithfulness.

4. Yearly financial reports.

5. Accruals and deferrals in closing and adjusting process.

6. Useful standard calculation unit for business transactions.

7. Notes as part of essential information to a fair presentation.

8. Affairs of the business distinguished from those of its owners.

9. Business enterprise considered to have a long life.

10. Valuing assets at amounts initially paid for them.

11. Application of the similar accounting principles as in the preceding year.

12. Summarizing important accounting policies.

13. Presentation of timely information with feedback and predictive value.

14. Using the lower of cost or market approach in valuing inventories.

15. Recording a transaction when services or goods are exchanged for cash or claims to cash.