Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(TCO A) Listed below are several information characteristics and accounting principles and assumptions. Each of these items is assigned a number. Match thenumber of each
(TCO A) Listed below are several information characteristics and accounting principles and assumptions. Each of these items is assigned a number. Match thenumber of each with the appropriate phrase that states its application. Note:Each answer may be used multiple times. (Points : 30) |
Potential Matches: |
1 : Expense recognition principle |
2 : Materiality |
3 : Full disclosure principle |
4 : Historical cost principle |
5 : Periodicity assumption |
6 : Revenue and expense recognition principles |
7 : Conservatism |
8 : Industry practices or fair value principle |
9 : Revenue recognition principle |
10 : Economic entity assumption |
Answer |
:Fair value changes are not recognized in the accounting records |
:Repair tools are expensed when purchased |
:Financial information is presented so that investors will not be misled |
:Rationale for accrual accounting |
:Intangible assets are capitalized and amortized over periods benefited |
:Agricultural companies use fair value for purposes of valuing crops |
:Lower of cost or market is used to value inventories |
:Revenue is recorded at point of sale |
:The use of consolidated statements is justified |
: Reporting must be done at defined time intervals |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started