1. (TCO A) Listed below are several information, characteristics, and accounting principles and assumptions. Match the term with the appropriate phrase that states its application. (Points : 30)

Potential Matches:

1 : Earning process completed and realized or realizable

2 : Presentation of error-free information with representational faithfulness

3 : Notes as part of necessary information to a fair presentation

4 : Affairs of the business distinguished from those of its owners

5 : Valuing assets at amounts originally paid for them

6 : Business enterprise assumed to have a long life

7 : Accruals and deferrals in adjusting and closing process

8 : Yearly financial reports

9 : Application of the same accounting principles as in the preceding year

10 : Stable dollar assumption

Answer

: Monetary unit assumption

: Revenue recognition principle

: Reliability characteristic

: Periodicity assumption

: Matching principle

: Full disclosure principle

: Economic entity assumption

: Going concern assumption

: Historical cost principle

: Consistency characteristic