The concepts of accounting covered in Chapters 2 through 6 are shown below. Match each transaction with its related concept by entering the appropriate letter in the space provided. Use only one letter for each blank space: The concepts of accounting covered in Chapters 2 through 6 are shown below. Match each transaction with its related concept by entering the appropriate letter in the space provided. Use only one letter for each blank space:

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Concepts Transactions (1) Users of inancial statements A. Recorded a $1,000 sale of merchandise on credit. (2) Objective of financial B. Counted (inventoried) the unsold items at the end of the period and valued them in statements dollars, C. Acquired a vehidle for use in operating the business. D. Reported the amount of depreciation expense because it will likely aftect important Qualitative Characteristics (3) Relevance (4) Verifiability (5) Materiality decisions of statement users. E. Identified as the investors, creditors, and others interested in the business. F Used special accounting approaches because of the uniqueness of the industry G. Issued notes payable of $1 million. H. Paid a contractor for an addition to the building with $10,000 cash and $20,000 Assumptions (6) Separate entity (7) Continuity (8) Unit of measure (9) Periodicity market value of the company's shares ($30,000 was deemed to be the cash equivalent price) Engaged an outside independent accountant to audit the financial statements. determined the cost of those goods sold and the cost of rendering those services. ownership of the goods sold passes to the customer. decisions. Elements of Financial Statements (10) Revenues J. Sold merchandise and rendered services for cash and on credit during the year; then K. Established an accounting policy that sales revenue shall be recognized only when L To design and prepare the financial statements to assist the users in making M. Established a policy not to include in the financial statements the personal financial (11) Expenses (12) Gains (13) Losses (14) Assets (15) Liabilities (16) Accounting equation affairs of the owners of the business. Principles and Related Concepts (17) Cost (18) Revenue recognition (19) Matching (20) Full disclosure N. Sold an asset at a loss that was a peripheral or incidental transaction. O. The value to users of a special financial report exceeds the cost of preparing it. P Valued an asset, such as inventory, at lower than its purchase cost because its market value is lower Constraints of Accounting. Dated the statement of earnings "For the Year Ended December 31, 2014.' (21) Cost 22) Prudence R. Used services from outsiders-paid cash for some and the remainder on credit. S. Acquired an asset (a pencil sharpener that will have a useful life of five years) and (23) Industry peculiarities recorded it as an expense when purchased for $2.99. T. Disclosed in the financial statements all relevant financial information about the business, necessitated the use of notes to the financial statements. U. Sold an asset at a gain that was a peripheral or incidental transaction. V. Assets of $500,000 Liabilities of $300,000-Shareholders' equity of $200,000. W.Accounting and reporting assume a "going concem.