Listed below are accounting concepts discussed in this chapter.
a. Economic entity assumption
b. Going concern assumption
c. Periodicity assumption
d. Monetary unit assumption
e. Historical cost principle
f. Conservatism
g. Matching
h. Full - disclosure principle
i. Cost effectiveness
j. Materiality
Identify by letter the accounting concept that relates to each statement or phrase below.
--1. Inflation cause a violation of this assumption.
--2. Information that could affect decision making should be reported.
--3. Recognizing expense in the period they were incurred to produce revenue.
--4. The basis for measurement of many assets and liabilities.
--5. Relates to the qualitative characteristic of timeliness.
--6. All economic events can be identified with a particular entity.
--7. The benefits of providing accounting information should exceed the cost of doing so.
--8. A consequence is that GAAP need to be followed in all situations.
--9. Not a qualities characteristic, but a practical justification for some accounting choices.
--10. Assumes the entity will continue indefinitely.