Question
. Match accounting assumption with most appropriate statement. A. Time Period F. Expense Recognition B. Materiality G. Consistency C. Going Concern H. Full Disclosure D.
. Match accounting assumption with most appropriate statement.
A. | Time Period | F. Expense Recognition |
B. | Materiality | G. Consistency |
C. | Going Concern | H. Full Disclosure |
D. E. | Revenue Recognition Business Entity | I. Transaction Approach J. Historical Cost |
Insert the applicable letter below
| i. | Land is purchased for $760,000. The current value of the land is $625,000. Which concept is applied to record the correct amount?
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| ii. | Wall Street Journal: subscription fees collected in advance are recorded as unearned subscription income and later recognized when earned. |
| iii. | All significant relevant information is reported.
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| iv. | Discount retailer Target Corporation routinely sends emails announcing sales for preferred customers. No economic impact occurs; therefore, no transaction is recorded.
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| v. | Online retailer Amazon, Inc. is financially sound and will continue in business indefinitely. |
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| vi. | Costs incurred to provide a service or produce a product must be reported in the same period the revenue is recognized.
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| vii. | The company uses the same accounting principle from period to period.
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| viii. | Financial statements are prepared periodically.
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