Exercises Exercise 5-1 Match theory terms with definitions (L.O. 1-6) Match the items in Column A with the proper descriptions in Column B. Column A Column B 0 1. Going concern (continuity) 2. Comparability(Consistency) Full disclosure Periodicity Money measurement 6. Expense recognition 7. Materiality 8. Historical cost 9. FASB 10. Business entity a. Concerned with relative size of dollar amounts b. Requires separation of personal from business activities in the recording and reporting processes c. A common basis for the recording of assets d. Required if the accounting treatment differs from that previously used for a particular item e. An assumption that would be unreasonable to use in reporting on a firm that had become insolvent f. None of these g. Requires a company to use the same accounting procedures and practices through time h. An assumption that the life of an entity can be subdivided into time periods for reporting purposes i. The assumption that economic activity can be measured by a monetary unit such as the dollar. j. The current body responsible for setting accounting standards in the United States