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In the space provided, list the following statements by letter and choose the best accounting concept referenced from the numbered list below them. Use only
In the space provided, list the following statements by letter and choose the best accounting concept referenced from the numbered list below them. Use only numbers in your response and choose only one answer for each question.
A. Ignores the possibility of inflation.
B. Implies consensus among different observers.
C. Assumes all transactions can be identified with a particular entity.
D. Assume an entity will continue to operate indefinitely.
E. Requires reporting the financial life of an entity in discrete time frames.
F. Basis of measurement for fixed assets.
G. Application of GAAP sometimes avoided under this constraint.
H. Recognition of expenses in the period in which it is incurred to earn revenue
I. Reporting of all information that could affect decisions.
J. Recognition of revenue only after certain criteria are satisfied.
1. Historical Cost
2. Going Concern Assumption
3. Economic Entity Assumption
4. Verifiability
5. Monetary Unit Assumption
6. Periodicity Assumption
7. Realization Principle
8. Materiality
9. Matching Principle
10. Full Disclosure
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