Match the statements below with the accounting assumption, characteristic, or principle to which the statement relates. Assumptions/characteristics/principles may be used once, more than once, or not at all. - v Recorded when the performance obligation is satisfied. a. Revenue recognition principle The reason for recording accruals and deferrals in adjusting entries. b. Matching principle · v Valuing assets at amounts originally paid for them. C. Historical cost principle Entity assumed to have a long life d. Going concern assumption · Description of significant accounting policies and unusual events. e. Full disclosure principle v Information has predictive and confirmatory value. f. Relevance characteristic 8. Consistency characteristic

The new standard, Revenue from Contracts with Customers, recognizes revenue based on a(n): Revenue-Expense Approach Asset-Liability Approach O Asset-Equity Approach O Liability-Equity Approach

TRUE or FALSE Materality Concept Question 1. When it comes to determining the materiality of an amount, the accountant typically compares it to total assets, total liabilities, total expenses, etc.

Which of the following best describes the proper accounting for interim financial reports? a. The interim period is viewed as an integral part of the annual accounting period. b. The interim period is viewed as a distinct, independent accounting period. c. Interim net income should be determined by using the same principles as those for the annual accounting period. d. Net income should be computed on the cash basis except for sales, cost of goods sold, and depreciation.

The following are discussed in the primary financial statement project, except: aggregation and disaggregation O b. presentation of financial position O c. unusual item O d. presentation of income statement

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Financial reporting purposes, long-lived, revenue-producing assets typically are classified in two categories. What are the two categories explain?

Advances from customers are classified as a(n) a. b. C. d. Select one: a. current asset. b. current liability. С. expense. d. revenue.

Multiple Choice Question There is a cause-and-effect relationship between revenues and expenses that dictates: O when costs are recognized as expenses in the income statement. O where in the income statement expenses should be presented. O when revenues are recognized in the income statement. O the ordering of assets and liabilities in the balance sheet.

Match the following situations or statements with the correct assumption or principle. Financial Statements must be prepared at defined equal time intervals A company is assumed to continue its activity in order to fulfill objectives and commitments All important financial information must be reported or revealed. The value of an asset will be kept unchanged regardless of changes in the assets fair value. Expenses are recorded in the same period when they help generate revenues. Choose... Choose... Going concern assumption Periodicity assumption Expense recognition principle Historical cost principle Full disclosure principle Choose... Choose... =