Below is a list of accounting concepts:

1. Relevance

2. Faithful representation

3. Comparability

4. Verifiability

5. Neutrality

6. Understandability

Instructions

Match each concept with the best description that follows:

a. _____ An economic event is reported so it represents what actually happened.

b. _____ Users fi nd the information in the fi nancial statements helps them to make decisions.

c. _____ The accounting information shows the profi t of a business without consideration of what the owner may want to report.

d. _____ Financial statements make sense to business people.

e. _____ Henry is able to confi rm the information presented in the fi nancial statements.

f. _____ Très Chic Boutique uses the same accounting methods as other similar boutiques.