1.(TCO A) Listed below are several information characteristics and accounting principles and assumptions. Each of these items is assigned a number. Match thenumber of each with the appropriate phrase that states its application. Note:Each answer may be used multiple times. (Points : 30)

Potential Matches:

1 : Expense recognition principle

2 : Materiality

3 : Full disclosure principle

4 : Historical cost principle

5 : Periodicity assumption

6 : Revenue and expense recognition principles

7 : Conservatism

8 : Industry practices or fair value principle

9 : Revenue recognition principle

10 : Economic entity assumption

Answer

:Fair value changes are not recognized in the accounting records

:Repair tools are expensed when purchased

:Financial information is presented so that investors will not be misled

:Rationale for accrual accounting

:Intangible assets are capitalized and amortized over periods benefited

:Agricultural companies use fair value for purposes of valuing crops

:Lower of cost or market is used to value inventories

:Revenue is recorded at point of sale

:The use of consolidated statements is justified

:

Reporting must be done at defined time intervals