Accounting Concepts

Match each of the following statements with the appropriate accounting concept. Some concepts may be used more than once, while others may not be used at$.$

Accounting Concept

Notation

Accounting period concept

Adequate disclosure concept

Business entity concept

Cost concept

Going concern concept

Matching concept

Objectivity concept

Unit of measure concept $P$

D

B

C

G

M

$0$

U

Use the notations shown to indicate the appropriate accounting concept.

Statements:

Assume that a business will continue forever.

Material litigation involving the corporation is described in a note. $$

Monthly utilities costs are reported as expenses along with the monthly revenues.

Personal transactions of owners are kept separate from the business.This concept supports relying on an independent actuary $($statistician$),$ rather than the chief operating officer of the corporation, to estimate a pension liability. $$

Changes in the use of accounting methods from one period to the next are described in the notes to the financial statements. $$

Land worth $$800,000$ is reported at its original purchase price of $$220,000.$

This concept justifies recording only transactions that are expressed in dollars. $$

If this concept was ignored, the confidence of users in the financial statements could not be maintained. $$

The changes in financial condition are reported at the end of the month. $$