ACCOUNTING
Listed below are some information characteristics and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application
Answer Potential Matches
_______________ Consistency characteristic 1. Presentation of error-free information with representational faithfulness.
_______________ Historical cost principle 2. Money in the common denominator of economic activity and provides an appropriate basis for accounting measurement and analysis.
_______________ Going concern principle 3. Business enterprise assumed to have a long life
_______________ Periodicity assumption 4. Application of the same accounting principles as in the preceding year
_______________ Reliability characteristic 5. Valuing assets at amounts originally paid for them
_______________ Economic entity assumption 6. Implies that a company can divide its economic activities into artificial time periods.
_______________ Monetary unit assumption 7. Notes as part of necessary information to a fair presentation
_______________ Revenue recognition principle 8. Affairs of the business distinguished from those of its owners
_______________ Full disclosure principle 9. Economic activity can be identified with a particular unit of accountability
________________ Economic entity assumption 10. Earnings process completed and realized or realizable
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