What is the primary purpose of the matching principle in accounting? To match revenues with expenses in the same period To match credits with debits To ensure financial statements are balanced To match assets with liabilities

To match revenues with expenses in the same period

What does the time period assumption in accounting imply? Financial statements are prepared annually Business operations are divided into artificial time periods Transactions are recorded as they occur Assets are reported at current value

Business operations are divided into artificial time periods

The revenue recognition principle dictates that revenue should be recognized when: Cash is received The service is performed or goods are delivered The contract is signed The invoice is issued

The service is performed or goods are delivered

Advanced Accounting Principles and Assumptions

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Accounting - Accounting Principles

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Cards in this deck(10)

Which accounting principle asserts that financial statements are prepared with the expectation that the entity will continue operations in the foreseeable future?

Which assumption states that transactions are recorded in a consistent currency regardless of inflation or deflation?

The accrual basis of accounting requires that revenues and expenses are recognized when they are:

Under which principle are businesses required to use the same accounting methods from period to period unless a change is justified?

Which principle emphasizes that financial statements should reflect all relevant financial information for decision makers?

What is the primary purpose of the matching principle in accounting?

Which assumption indicates that the business is a separate entity from its owners?

What does the time period assumption in accounting imply?

Which principle requires that assets are recorded at their original cost and not adjusted for market value changes?

The revenue recognition principle dictates that revenue should be recognized when:

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Advanced Accounting Principles and Assumptions

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