Cost Principle

Going Concern Principle

Conservatism Principle

Objectivity Principle

Revenue Recognition Principle

Consistency Principle

Materiality Principle

Full Disclosure Principle

Matching Principle

Business Entity Principle

Match each GAAP principle (Generally Accepted Accounting Principles) to the appropriate practice/concept. A small company would regard $500 of office supplies as an asset while a big corporation would likely regard it Choose... as an expense The amount of purchases must be stated at their cost Choose... price Prevents people from changing accounting methods for the sole purpose of manipulating figures on the financial Choose... statements. Different people looking at the statements will arrive at the same values for the transaction. If you are involved in a lawsuit and may lose a considerable amount of money, you must include this information when borrowing from the bank. Choose... Revenue must be recognized at the time the service is provided regardless when the payment is received The owner of a business keeps his personal affairs separate from the company's records S Choose... Choose... Ensures that accounting standards are applied to select the least optimistic option when several options are available Choose... Each expense item related to revenue earned must be recorded in the same accounting period as the revenue Assumes that the business is not in distress and will continue to operate for the foreseeable future Choose