a. Economic entity assumption g. Matching principle b. Going concern assumption h. Full disclosure principle c. Monetary unit assumption i. Relevance d. Periodicity assumption j. Verifiability e. Historical cost principle k. Comparability f. Revenue recognition principle l. Representational faithfulness m. Fair Value Principle n. Control

Note that each principle or qualitative characteristic may be matched to more than one phrase or not at all

____ 1. Measuring assets in dollars rather than units.

____ 2. Recognizing revenues when risks and rewards of ownership are passed to another party.

____ 3. Accounting information reflects the economic substance of the event or transaction.

____ 4. Recognizing bad debt expense in the period when sales are recognized.

____ 5. A company consolidating an investee that it has power over.

____ 6. Recognizing warranty expense in the period when sales are recognized

____ 7. Information making a difference in how investors decide which firms stocks to buy.

____ 8. Reporting the performance of the corporation separately from that of the shareholders.

____ 9. Reporting assets at historical cost rather than net realizable value.

__ 10. Requiring firms to adjust certain financial instruments to current market value at year end.

____ 11. Application of the same accounting principles as in the preceding year

____ 12. Complete, neutral and free from material error

____ 13. Carrying inventory forward as an asset and expensing it in the period that it is sold.

____ 14. Requiring firms to follow GAAP.

_____15. Companies prepare financial statements quarterly or annually rather than do so only when the companies have ceased operations.