ACC 1100 Accounting: What the Numbers Mean Chapter 2 Accounting Principles Worksheet introduced in Chapter 1, and others relate to the broader unga accounting principles. Again, it is important to recognize that these concepts and prin- ciples are more like practices that have been generally agreed upon over time than hard-and-fast rules or basic laws such as those encountered in the physical sciences. These concepts and principles can be related to the basic model of the flow of data from transactions to financial statements illustrated earlier and shown here: Accounting entity Abilities Stackers' exprity Going concer (continuity) Unit of mea Cost principle Objectivity Pundaes fa seting, classifying and pressing (bookkeeping) Selection of alternative method of reflecting the effect of certain transacts (accounting) Accounting period Mutching revenue and expose Revenue recognized of a Accrual concept Concepts/Principles Related to the Entire Model Financial Consistency Full disclosure Materiality -Conservatism The basic accounting equation described earlier in this chapter is the mechanical key REQUIRED: Picture Source: Accounting: What the Numbers Mean, page 44. Write the name of the most appropriate accounting concept or principle above to the description listed above or by reviewing page 44 to page 48 in the textbook. 1.. 2. 3. 4. 5. is the belief that the company will not go out of business in the near future. is the currency used to record the value of a transaction. In the United States and Japan, transactions are recorded in Dollars and Yen. requires that transaction be recorded at the agreed upon price at the time of the transaction, rather than at the item's fair market value. requires that sales and expenses be recorded on the day that the transaction takes place, even if the payment is made at a later time. requires a company to use the same Generally Accepted Accounting Principle to record transactions from one year to the next. 6. is the company to which the financial reports relate. 7. is the month or year of 8. is the term which means 9. 10. the financial statements. that the information on the financial reports may be estimates, but the information is still useful to the reader. necessary information is presented. and Equity indicates that all = is Assets Liabilities