Match the following accounting assumptions to the appropriate explanations that follow: Entity Assumption Going-concern assumption Periodicity assumption

Question:

Match the following accounting assumptions to the appropriate explanations that follow:

Entity Assumption 

Going-concern assumption 

Periodicity assumption 

Monetary unit assumption 

Stable currency assumption

(a) Overcomes mixing alternative measurements into the financial statements.

(b) A continuous business process can be segmented into discrete intervals.

(c) Provides for an orderly allocation of costs and revenues over extended time periods.

(d) Justification for consolidating the accounts of separate legal entities.

(e) Because of this, changing currency values due to inflation effects are disregarded.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting

ISBN: 9781456352974

1st Edition

Authors: Dr. Larry M. Walther

Question Posted: