REQUIRED: Picture Source: Accounting: What the Numbers Mean, page 44. Write the name of the most appropriate accounting concept or principle above to the description listed above

1. The going concern concept is the belief that the company will not go out of business in the near future. 2. The cost principle is the currency used to record the value of a transaction. In the United States and Japan, transactions are recorded in Dollars and Yen. 3. Matching concept requires that transaction be recorded at the agreed upon price at the time of the transaction, rather than at the items fair market value. 4. Accrual concept requires that sales and expenses be recorded on the day that the transaction takes place, even if the payment is made at a later time. 5. Consistency requires a company to use the same Generally Accepted Accounting Principle to record transactions from one year to the next. 6. Full disclosure is the company to which the financial reports relate. 7. Materiality is the month or year of the financial statements. 8. Management concept (materiality) is the term which means that the information on the financial reports may be estimates, but the information is still useful to the reader. 9. Conservatism indicates that all necessary information is presented. 10. Accounting equation is Assets = Liabilities and Equity

CAN YOU CHECK THAT PLEASE

Accounting entity Assets = Liabilities + Stockholders' equity (accounting equation) Going concern (continuity) 00012 o golvlovi Transactions ordo ortovo oor svies Financial Procedures for sorting, classifying, and presenting (bookkeeping) Selection of alternative methods of reflecting the effect of certain transactions (accounting) statements Unit of measurement Accounting period Matching revenue and expense Revenue recognized at time of sale Consistency Full disclosure Cost principle Objectivity Materiality Accrual concept Conservatism