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Question 1 Match several information characteristics and accounting principles and assumptions with the appropriate phrase that states its application. 1. Stable-dollar assumption (do not use historical cost principle). 2. The performance obligation is satisfied. Monetary unit assumption 3. Numbers and descriptions match what really existed or happened. Expense recognition principle 4. Yearly financial reports. Periodicity assumption Full disclosure principle 5. Accruals and deferrals in adjusting and closing process. (Do not use going concern.) Historical cost principle Relevance characteristic 6. Useful standard measuring unit for business transactions. Faithful representation characteristic Going concern assumption Notes as part of necessary information to a fair presentation. Consistency characteristic Revenue recognition principle 8. Affairs of the business distinguished from those of its owners. Economic entity assumption 9. Company assumed to have a long life. 10. Valuing assets at amounts originally paid for them. 11. Application of the same accounting principles as in the preceding year. 12. Summarizing significant accounting policies. 13. Presentation of timely information with predictive and confirmatory value. 7