901 EQHITy Prof. R. Litvack Page I of 2 For each staternent of definition below, match the letter of the term(s) given. A. Periodicity Assumption B. Accrual Accounting C. Comparability D. Conservatism E. Cost Effectiveness F. Economic Entity Assumptiorn G. Full Disclosure Principle H. Going Concern Assumption 1. Historical Cost Principle J. Materiality K. Matching Principle L Monetary Unit Assumption 1. A basic accounting concept which requires that all relevant information be presented in an unbiased, understandable, and timely manner 2. This assumption implies that the dollar has the same characteristic - stability over time - as all generally accepted measuring units 3. When doubt exists concerning two or more reporting altenatives, users of information are best served by selecting the alternative that will be least likely to overstate assets and income. 4. A basic assumption that revenues are recognized when earmed and expenses are recognized when incurred, without regard to when cash is paid 5. In the absence of evidence to the contrary, it is assumed that the business will continue to operate indefinitely, at least long enough to carry out existing plans, commitments, and contracts The life of a business is divided into various artificial time periods for financial reporting purposes. 6. _7Concems the relative size of an item and its effect on decisions. 8. Requires consideration of the costs and value of information. 9. The cash equivalent price of goods or services at the date of acquisition. 10. The business enterprise or other reporting unit is viewed as separate and distint from its owners or other entities