Question 21 (2 points) Financial accounting in the United States is governed by concepts and rules known as 1) IFRS 2) GAAP 3) SEC 4) AICPA Question 22 (5 points) Match each accounting principle or assumption to its correct description 1. Prescribes that accounting information is based on actual cost. Measurement 2. Prescribes that revenue is recognized when goods or services are provided to customers. Full disclosure 3. Also called the Matching principle. Expense recognition > Time period assumption 4. Prescribes that a company report details of financial statements that would impact users' decisions. > Revenue recognition 5. Presumes that the life of a company can be divided into time periods. such as months and years, and that useful reports can be prepared for those periods Question 31 (2 points) An account balance is: 1) The total of the credit side of the account. 2) The total of the debit side of the account. 3) The difference between the total debits and total credits for an account including the beginning balance. 4) Assets = liabilities + owner's equity