Reference no: EM132995870
Problem 1: During the lifetime of an entity, accountants produce financial statements at arbitrary points in time in accordance with which basic accounting concept?
A) Cost/benefit constraint
B) Periodicity assumption
C) Conservatism constraint
D) Matching principle
Problem 2: The accounting principle of matching is best demonstrated by
A) not recognizing any expense unless some revenue is realized.
B) associating effort (expense) with accomplishment (revenue).
C) recognizing prepaid rent received as revenue.
D) establishing an Appropriation for Contingencies account.
Problem 3: Valuing assets at their liquidation values rather than their cost is inconsistent with the
A) periodicity assumption.
B) matching principle.
c) materiality constraint.
D) historical cost principle.
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