Following are accounting concepts covered in Chapters 1 through 5. Match each event (A-I) with its related

Question:

Following are accounting concepts covered in Chapters 1 through 5. Match each event (A-I) with its related concept (1-9) by entering the appropriate letter in the space provided. Use one letter for each blank.

Concepts Events

1. Users of financial statements

2. Objective of financial statements

3. Faithful representation

4. Comparability

5. Separate entity

6. Unit of measure

7. Cost principle

8. Revenue recognition principle

9. Expense recognition principle

A. Counted unused supplies at the end of the period and valued them in U.S. dollars.

B. Analyzed the financial statements to assess the company's performance.

C. Established an accounting policy that sales revenue shall be recognized only when services have been provided to the customer.

D. Prepared and distributed financial statements that provide useful financial information for creditors and investors.

E. Established a policy not to include in the financial statements the personal financial affairs of the owners of the business.

F. Used the same accounting policies over several years to facilitate analysis.

G. Established policies to report the company's business activities in a way that depicts their economic substance.

H. Adjusted the rent accounts to show the cost of rent used up in the current period.

I. Acquired a vehicle for use in the business, reporting it at the agreed-upon purchase price rather than its higher sticker price.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Fundamentals of Financial Accounting

ISBN: 978-0078025372

4th edition

Authors: Fred Phillips, Robert Libby, Patricia Libby

Question Posted: