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Match each item characteristics, assumptions, principles, and constraint guide the FASB when it creates accounting standards with a description below. 1. select an option Monetary

Match each item characteristics, assumptions, principles, and constraint guide the FASB when it creates accounting standards with a description below.

1. select an option

Monetary Unit AssumptionComparabilityEconomic Entity AssumptionMaterialityConsistencyPeriodicity AssumptionGoing Concern AssumptionHistorical Cost PrincipleRelevanceFull Disclosure PrincipleCost ConstraintFaithful Representation

Items not easily quantified in dollar terms are not reported in the financial statements.

2. select an option

Going Concern AssumptionFaithful RepresentationHistorical Cost PrincipleConsistencyMaterialityCost ConstraintFull Disclosure PrincipleMonetary Unit AssumptionPeriodicity AssumptionRelevanceComparabilityEconomic Entity Assumption

Accounting information must be complete, neutral, and free from error.

3. select an option

Historical Cost PrincipleGoing Concern AssumptionRelevanceFaithful RepresentationFull Disclosure PrincipleMaterialityComparabilityConsistencyMonetary Unit AssumptionEconomic Entity AssumptionPeriodicity AssumptionCost Constraint

Personal transactions are not mixed with the companys transactions.

4. select an option

Monetary Unit AssumptionFaithful RepresentationEconomic Entity AssumptionComparabilityFull Disclosure PrincipleConsistencyPeriodicity AssumptionRelevanceGoing Concern AssumptionHistorical Cost PrincipleMaterialityCost Constraint

The cost to provide information should be weighed against the benefit that users will gain from having the information available.

5. select an option

Full Disclosure PrincipleHistorical Cost PrinciplePeriodicity AssumptionGoing Concern AssumptionMaterialityEconomic Entity AssumptionConsistencyComparabilityMonetary Unit AssumptionCost ConstraintRelevanceFaithful Representation

A companys use of the same accounting principles from year to year.

6. select an option

Faithful RepresentationHistorical Cost PrincipleRelevanceGoing Concern AssumptionMaterialityComparabilityCost ConstraintFull Disclosure PrincipleConsistencyMonetary Unit AssumptionEconomic Entity AssumptionPeriodicity Assumption

Assets are recorded and reported at original purchase price.

7. select an option

Economic Entity AssumptionPeriodicity AssumptionConsistencyMaterialityGoing Concern AssumptionComparabilityFull Disclosure PrincipleHistorical Cost PrincipleCost ConstraintRelevanceFaithful RepresentationMonetary Unit Assumption

Accounting information should help users predict future events, and should confirm or correct prior expectations.

8. select an option

RelevanceHistorical Cost PrincipleComparabilityConsistencyFaithful RepresentationMonetary Unit AssumptionPeriodicity AssumptionEconomic Entity AssumptionGoing Concern AssumptionFull Disclosure PrincipleMaterialityCost Constraint

The life of a business can be divided into artificial segments of time.

9. select an option

MaterialityConsistencyGoing Concern AssumptionFaithful RepresentationFull Disclosure PrincipleComparabilityMonetary Unit AssumptionCost ConstraintRelevanceEconomic Entity AssumptionPeriodicity AssumptionHistorical Cost Principle

The reporting of all information that would make a difference to financial statement users.

10. select an option

Periodicity AssumptionEconomic Entity AssumptionHistorical Cost PrincipleGoing Concern AssumptionComparabilityMonetary Unit AssumptionFaithful RepresentationFull Disclosure PrincipleMaterialityCost ConstraintRelevanceConsistency

The judgment concerning whether an items size makes it likely to influence a decision-maker.

11. select an option

Monetary Unit AssumptionComparabilityHistorical Cost PrincipleConsistencyEconomic Entity AssumptionMaterialityCost ConstraintFaithful RepresentationPeriodicity AssumptionGoing Concern AssumptionFull Disclosure PrincipleRelevance

Assumes a business will remain in operation for the foreseeable future.

12. select an option

Historical Cost PrincipleFaithful RepresentationCost ConstraintRelevanceFull Disclosure PrincipleEconomic Entity AssumptionMonetary Unit AssumptionComparabilityMaterialityConsistencyPeriodicity AssumptionGoing Concern Assumption

Different companies use the same accounting principles.

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