DO IT$!2\mathrm{.}3($LO $3),$ K The following characteristics, assumptions, principles, and constraint guide the FASB when it creates accounting standards.

Relevance Periodicity assumption

Faithful representation Going concern assumption

Comparability Historical cost principle

Consistency Full disclosure principle

Monetary unit assumption Materiality

Economic entity assumption Cost constraint

Match each item above with a description below.

$\_\_\_\_$Items not easily quantified in dollar terms are not reported in the financial statements.

$\_\_\_\_$Accounting information must be complete, neutral, and free from material error.

$\_\_\_\_$Personal transactions are not mixed with the company$$s transactions.

$\_\_\_\_$The cost to provide information should be weighed against the benefit that users will gain from having the information available.

$\_\_\_\_$A company$$s use of the same accounting principles from year to year.

$\_\_\_\_$Assets are recorded and reported at original purchase price.

$\_\_\_\_$Accounting information should help users predict future events, and should confirm or correct prior expectations.

$\_\_\_\_$The life of a business can be divided into artificial segments of time.

$\_\_\_\_$The reporting of sufficient details regarding circumstances and events that would make a difference to financial statement users.

$\_\_\_\_$The judgment concerning whether omitting or misstating an item could influence the decision of a financial statement user.

$\_\_\_\_$Assumes a business will remain in operation for the foreseeable future.

$\_\_\_\_$Different companies use the same accounting principles.