Which principle/guideline is associated with the assumption that the company will continue on long enough to carry out its objectives and commitments?

Select one:

a. Economic Entity

b. Time Period

c. Going Concern

A very large corporation's financial statements have the dollar amounts rounded to the nearest $1,000. Which accounting principle/guideline justifies not reporting the amounts to the penny?

Select one:

a. Monetary Unit

b. Full Disclosure

c. Materiality

Accountants might recognize losses but not gains in certain situations. For example, the company might write-down the cost of inventory, but will not write-up the cost of inventory. Which principle/guideline is associated with this action?

Select one:

a. Materiality

b. Monetary Unit

c. Conservatism

Which principle/guideline directs a company to show all the expenses related to its revenues of a specified period even if the expenses were not paid in that period?

Select one:

a. Matching

b. Cost

c. Monetary Unit

When the accountant has to choose between two acceptable alternatives, the accountant should select the alternative that will report less profit, less asset amount, or a greater liability amount. This is based upon which principle/guideline?

Select one:

a. Cost

b. Conservatism

c. Materiality