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The following characteristics, assumptions, principles, or constraint guide the FASB when it creates accounting standards. Relevance Faithful representation Comparability Consistency Monetary unit assumption Economic entity

The following characteristics, assumptions, principles, or constraint guide the FASB when it creates accounting standards.
Relevance
Faithful representation
Comparability
Consistency
Monetary unit assumption
Economic entity assumption
Expense recognition principle
Time period assumption
Going concern assumption
Historical cost principle
Full disclosure principle
Materiality
Identify each item above with a description below.
1.
select an item
Comparability
Ability to easily evaluate one companys results relative to anothers.
2.
select an item
Going concern assumption
Requirement that a company will continue to operate for the foreseeable future.
3.
select an item
The judgment concerning whether an item's size is large enough to matter to decision-makers.
4.
select an item
The reporting of all information that would make a difference to financial statement users.
5.
select an item
The practice of preparing financial statements at regular intervals.
6.
select an item
The quality of information that indicates the information makes a difference in a decision.
7.
select an item
A belief that items should be reported on the balance sheet at the price that was paid to acquire them.
8.
select an item
A companys use of the same accounting principles and methods from year to year.
9.
select an item
Tracing accounting events to particular companies.
10.
select an item
The desire to minimize bias in financial statements.
11.
select an item
Reporting only those things that can be measured in monetary units.
12.
select an item
Dictates that efforts (expenses) be recognized in the period in which a company uses assets or incurs liabilities to generate results (revenues).

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