Foundational accounting principles and qualitative characteristics - matching Listed below are several foundational accounting principles and qualitative characteristics. Note that each item may be used more than once or not at all. Economic entity assumption Matching principle Going concern assumption Full disclosure principle Monetary unit assumption Relevance Periodicity assumption Control Historical cost principle Comparability Revenue recognition principle Materiality Representational faithfulness

Please write the word that best reflects the answer. 1. Ignoring inflation when preparing financial statements. 2. Deciding which company to include in the Consolidated Financial Statements. 3. Accounting information reflects the economic substance of the event. 4. Presentation of timely information with predictive and feedback value which makes a difference to the users. 5. Recording Bad Debts Expense each year based on a % of sales. 6. Changing prior year financial statements when the depreciation policy is changed from Straight line to declining balance.

7. Valuing assets at amounts originally paid for them and ignoring change in market values 8. The affairs of the business are distinguished from those of its owners. 9. Any material events that occur after year end but before the statements are released are documented in the Notes to the Financial Statements. 10. Refers to the dollar amount that makes a difference in the users decisions 11. Includes neutrality, completeness, and freedom from material error. 12. During the lifetime of an entity, accountants produce financial statements at arbitray points in time in accordance with _____. 13. The reason accountants use Accrual accounting. 14. What principle is violated when the shipping costs of inventory are directly recorded as part of cost of goods sold and are never recorded as part of inventory.