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Enter the correct letter in the highlighted column that goes with the description/example. A. Conservatism Information necessary to provide the reader a complete understanding of
Enter the correct letter in the highlighted column that goes with the description/example. | |||
A. | Conservatism | Information necessary to provide the reader a complete understanding of the financial information is included in the notes section of the financial statement. | |
B. | Materiality | The company will continue to exist for the foreseeable future. | |
C. | Revenue Recognition | The activities of a business are possible to be accurately reflected in specific time periods. | |
D. | Matching | Revenue is recorded when the ownership of the product is transferred or a service is performed. | |
E. | Going Concern | All business transtions are kept separately from the owner's personal financial information. | |
F. | Full Disclosure | Only transactions that can recorded in U.S. dollars are entered. | |
G. | Cost | Expenses are matched to revenues to more accurately represent the profit of the company. | |
H. | Time Period | Other accounting principles can be ignored should the impact on the financial statement produce no difference in the basic representation of the company's financial situation. | |
I. | Monetary Unit | The amount originally spent on an item is the amount used to record the item in the books. This amount is not adjusted to reflect increased value. | |
J. | Economic Entity | The company will always chose the option that provides the lower net income figure should there be an option regarding how information could be reported. |
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