A Periodicity assumption B Monetary unit assumption C Going concern assumption D Economic entity assumption E Full disclosure principle F Revenue recognition principle Historical cost principle H Matching principle Provide the letter corresponding to the SINGLE, PRIMARY assumption, principle, or qualitative characteristic that corresponds with each of the following statements. Representational faithfulness J Comparability (incl. Consistency) K Relevance L Materiality M Conservatism A company records in its financial statements (FS) the estimated costs of expected product warranty claims by customers at the same time it records the related sale. structure includes a non-operating parent (holding) company and legally separate subsidiary companies in 27 U.S. states and A company presents its recognized assets and liabilities in the balance sheet primarily at their historical costs, rather than their expected liquidation 1 values. 8 A company's FS do not disclose a pending patent infringement lawsuit against the company because managers, in consultation with counsel, concluded the 2 suit is frivolous and without merit. 9 foreign countries Acompany recognizes a loss as a result performing a lower-of-cost-or-market analysis of existing inventory, but does not recognize appreciation in the market value of inventory as a result such analyses. The amount of total assets reported in a company's balance sheet includes the depreciated cost of production facilities placed in service 17 years ago A company relies on quoted market prices to determine the fair value of investments securities reported in its balance sheet, 10 rather than employing valuation consultants for this purpose. A company's FS describe its refinancing of maturing debt securities, which managers completed after the date of the 4 and goods manufactured within the past 6 months 11 balance sheet but before they issued the FS. A company changes from the accelerated depreciation method to the straight line depreciation method after reviewing FS of competitors, which disclose Acompany's FS provide a schedule of its lease and loan payment obligations for each of the five years following the balance sheet date A company's revenues derive from contracts with customers for the construction of municipal infrastructure requiring (on average 3 years to complete, though it issues FS quarterly and annually A company records the receipt of cash in exchange for merchandise delivered to a customer as a deposit liability their use of the later method. 12 A company's accounting policies and FS presentation practices facilitate securities analysts' use of the FS in preparing fundamental analyses (intrinsic 6 valuations) of the company's stock 13 A company recognizes equipment in its FS at its acquisition cost, net of accumulated depreciation, even though this amount is less than the amount 7 it could receive in a current sale of the equipment. 14 because the customer has the right to return the goods any time expected product warranty claims by customers at the same time it records
