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TCO A) Listed below are several information, characteristics, and accounting pri

ID: 2501855 • Letter: T

Question

TCO A) Listed below are several information, characteristics, and accounting principles and assumptions. Match the term with the appropriate phrase that states its application. (Points : 30) Potential Matches:

1 : Application of the same accounting principles as in the preceding year

2 : Earning process completed and realized or realizable

3 : Notes as part of necessary information to a fair presentation

4 : Valuing assets at amounts originally paid for them

5 : Yearly financial reports

6 : Stable dollar assumption

7 : Affairs of the business distinguished from those of its owners

8 : Presentation of error-free information with representational faithfulness

9 : Business enterprise assumed to have a long life

10 : Accruals and deferrals in adjusting and closing process

Answer :

Monetary unit assumption :

Revenue recognition principle :

Reliability characteristic :

Periodicity assumption :

Matching principle :

Full disclosure principle :

Economic entity assumption :

Going concern assumption :

Historical cost principle :

Consistency characteristic

Explanation / Answer

Solution :

1 : Application of the same accounting principles as in the preceding year

Consistency characteristic

2 : Earning process completed and realized or realizable

Revenue recognition principle :

3 : Notes as part of necessary information to a fair presentation

Full disclosure principle :

4 : Valuing assets at amounts originally paid for them

Historical cost principle :

5 : Yearly financial reports

Periodicity assumption :

6 : Stable dollar assumption

Monetary unit assumption :

7 : Affairs of the business distinguished from those of its owners

Economic entity assumption :

8 : Presentation of error-free information with representational faithfulness

Reliability characteristic :

9 : Business enterprise assumed to have a long life

Going concern assumption :

10 : Accruals and deferrals in adjusting and closing process

Matching principle :

1 : Application of the same accounting principles as in the preceding year

Consistency characteristic

2 : Earning process completed and realized or realizable

Revenue recognition principle :

3 : Notes as part of necessary information to a fair presentation

Full disclosure principle :

4 : Valuing assets at amounts originally paid for them

Historical cost principle :

5 : Yearly financial reports

Periodicity assumption :

6 : Stable dollar assumption

Monetary unit assumption :

7 : Affairs of the business distinguished from those of its owners

Economic entity assumption :

8 : Presentation of error-free information with representational faithfulness

Reliability characteristic :

9 : Business enterprise assumed to have a long life

Going concern assumption :

10 : Accruals and deferrals in adjusting and closing process

Matching principle :