Helps decision makers confirm or corree 13. When the words and amounts accurately depict the e 14. Comprehensible to users. Required: Place the appropriate letter identifying each quality c on the line in front of the statement descrion 2-2 Accounting Assumptions The following is a list of accounting assumptions that have had an 2.4 the development of generally accepted accounting principles and statements describing certain acc A. Reporting entity B. Going concern C. Period of time D. Historical cost E. Monetary unit F. Recognition G. Accrual accounting H. Revenue recognition Expense recognition J. I. Conservatism 1. To provide timely information, companies prepare and report financial statements a 2. Appropriate recognition when a company consumes economic resources in conduc 3. Accounting measurements for U.S. companies are reported in dollars. 4. The financial statements represent the business, rather than its owners. 5. In the absence of evidence to the contrary, the business can be reasonably expect carry out its existing commitments. 6. Appropriate recognition when a company creates economic benefits (inflows of obligations) by providing goods 7.Transactions and events are recognized initially at the exchange price to provid information. or services to customers. 8. An accounting alternative is selected that is least likely to overstate assets and 9. The process of formally recording and reporting an item in the financial statem 10. The process of measuring and reporting the economic effects of transactions, event appropriate period when those effects occur, even though the cash consequences Required: Select the accounting assumption that justifies each accounting practice and plac preceding the statement