i i Select the matching Description for: Select the matching Description for: Assumes that a business will continue to operate unless it is known Expenses are recorded when benefit is used up to generate otherwise. revenue. Principle of Conservatism Matching Principle Consistency Principle Principle of Conservatism Matching Principle Consistency Principle Objectivity Principle Revenue Recogition Convention Full Disclosure Principle Objectivity Principle Havenue Recogition Convention Full Disclosure Principle Materiality Principle Cost Principle Monetary Unit Assumption Materiality Principle Cost Principle Monetary Unit Assumption Business Entity Concept Time Period Concept Going Concern Concept Business Entity Concept Time Period Concept Going Cancer Concept Expense Recognition Convention Expanse Recognition Convention Question 1 of 26 Question 3 of 26 i Select the matching Case for: i R. Brueht owns a construction company and believes because he is Select the matching Description for: the owner, no accounting entries are needed when he removes Accounting takes place over specific time periods known as fiscal lumber from the job-site to add a deck to his house. periods. The fiscal periods should be of equal length when used to measure the financial progress of the business. Principle of Conservatism Matching Principle Consistency Principle Principle of Conservatism Matching Principle Consistency Principle Objactivity Principle Revenue Recogition Convention Full Disclosure Principle Objectivity Principle Revenue Recogition Convention Full Disclosure Principle Materiality Principle Cost Principle Monetary Unit Assumption Materiality Principle Cost Principle Monetary Unit Assumption Business Entity Concept Time Period Concep Going Concern Concept Business Entity Concept Time Period Concept Going Concern Concept Expense Recognition Comention Expense Recognition Convention Question 2 of 26 Question 4 of 26Select the matching Case for: Select the matching Case for: A company debited $15 to Office Equipment for the purchase of a A company recorded the payment for a one year insurance policy new pencil sharpener which will be used by the business for the by debiting Insurance Expense. next 5 years. Principle of Conservatism Matching Principle Consistency Principle Principle of Conservatism Matching Principle Consistency Principle Objectivity Principle Revenue Recogition Convention Full Disclosure Principle Objectivity Principle Revenue Recogition Convention Full Disclosure Principle Materiality Principle Cost Principle Monetary Unit Assumption Materiality Principle Cost Principle Monetary Unit Assumption Business Entity Concept Time Period Concept Going Concom Concept Business Entity Concept Time Period Concept Going Concern Concept Expense Recognition Convention Expense Recognition Convention Question 5 of 26 Question 6 of 26 i Select the matching Case for: A company prepared an unclassified set of financial statements. Principle of Conservatism Matching Principle Consistancy Principle Objectivity Principle Revenue Recogition Convention Full Disclosure Principle Materiality Principle Cost Principle Monetary Unit Assumption Business Entity Concept Time Period Concept Going Concern Concept Expense Recognition Convention Question 7 of 26i i Select the matching Description for: Select the matching Description for: Each expense related to revenue earned must be recorded in the The accounting for a business or organization is kept separate from same accounting period as the revenue it helped to earn. the personal affairs of its owner, other business or organization. Principle of Conservatism Matching Principle Consistency Principle Principle of Conservatism Matching Principle Consistency Principle Objectivity Principle Revenue Recoghlan Convention Full Disclosure Principle Objectivity Principle Ravenue Recognion Convention Full Disclosure Principle Materiality Principle Cost Principle Monetary Unit Assumption Materiality Principle Cost Principle Monetary Unit Assumption Business Entity Concept Time Period Concept Business Entity Concept Going Concum Concept Going Concern Concept Time Period Concept Expense Recognition Convention Expanse Recognition Convention Question 8 of 26 Question 10 of 26 i Select the matching Case for: Select the matching Case for: A company selling franchises charges a franchise fee lasting 20 A company wrote the value of their equipment down to its years. They wanted to show the entire fee as revenue in the year estimated disposal value in order to lower net income for the year. they sold the franchise. Principle of Conservatism Matching Principle Consistency Principle Principle of Conservatism Matching Principle Consistency Principle Objectivity Principle Revenue Recogition Convention Full Disclosure Principle Objectivity Principle Revenue Recogition Convention Full Disclosure Principle Materiality Principle Cost Principle Monetary Unit Assumption Materiality Principle Cost Principle Monetary Unit Assumption Business Entity Concept Time Paried Concept Going Concur Concept Business Entity Concept Time Period Concept Going Concern Concept Expanse Recognition Convention Expurg Recognition Convention Question 9 of 26 Question 11 of 26i Select the matching Description for: Select the matching Case for: Revenue should be taken into account at the time the transaction is A company recorded the purchase of land at cost price and then completed. realized the value was greatly underestimated. They wanted to change the price based on the current market value of the property. Principle of Conservatism Matching Principle Consistency Principle Principle of Conservatism Matching Principle Consistency Principle Objectivity Principle Havenue Recogition Convention Full Disclosure Principle Objectivity Principle Havenue Recogition Convene Full Disclosure Principle Materiality Principle Cost Principle Monetary Unit Assumption Materiality Principle Cost Principle Monetary Unit Assumption Business Entity Concept Time Period Concept Going Cancom Concept Business Entity Concept Time Period Concept Going Concem Concept Expanse Recognition Convention Expense Recognition Convention Question 12 of 26 Question 14 of 26 i i Select the matching Description for: Select the matching Description for: Accountants are required to use GAAPs except when to do so would The accounting for a business should be fair and reasonable. The be expensive or difficult and where it makes no real difference to results should not overstate nor understate the affairs of the the decisions of users of financial statements. business. Principle of Conservatism Matching Principle Consistency Principle Principle of Conservatism Matching Principle Consistency Principle Objectivity Principle Revenue Recogition Convention Full Disclosure Principle Objectivity Principle Revenue Recogition Convention Full Disclosure Principle Materiality Principle Cost Principle Monetary Unit Assumption Materiality Principle Cost Principle Monetary Unit Assumption Business Entity Concept Time Period Concept Going Concern Concept Business Entity Concept Time Period Concept Going Concom Concept Expanse Recognition Convention Expense Recognition Convention Question 15 of 26 Question 13 of 26i i Select the matching Case for: Select the matching Case for: A company always recorded purchases in the Cost of Goods Sold A used appliance store works on the cash and barter business. The account (expense) whether or not the merchandise had been sold. bookkeeper is confused about how to record an entry, where a customer received a stove and in return owes the store 15 hours of plumbing labour. Principle of Conservatism Matching Principle Consistency Principle Principle of Conservatism Matching Principle Consistency Principle Objectivity Principle Revenue Recoghlan Convention Full Disclosure Principle Objectivity Principle Revenue Racegition Convention Full Disclosure Principle Materiality Principle Cost Principla Monetary Unit Assumption Materiality Principle Cost Principle Monetary Unit Assumption Business Entity Concept Time Parlod Concept Going Concum Concept Business Entity Concept Time Period Concept Going Concern Concept Expense Recognition Convention Expense Recognition Convention Question 16 of 26 Question 18 of 26 Select the matching Description for: i Accounting for purchases must be recorded and remain at their Select the matching Case for: cost price. M. Elliot, after three business failures, has opened a new restaurant. When calculating the life expectancy of her new equipment, it never entered her mind that she might fail again, but only how long the equipment could be used for. Principle of Conservatism Matching Principle Consistency Principle Principle of Conservatism Matching Principle Consistency Principle Objectivity Principle Revenue Recogition Convention Full Disclosure Principle Objectivity Principle Revenue Rocogition Convention Full Disclosure Principle Materiality Principle Cost Principle Monetary Unit Assumption Materiality Principle Post Principle Monetary Unit Assumption Business Entity Concept Time Period Concept Going Concam Concept Business Entity Concept Time Period Concept Going Concern Concept Expense Recognition Convention Expense Recognition Convention Question 17 of 26 Question 19 of 26Select the matching Description for: Select the matching Case for: The accounting will be recorded on objective evidence. Different A company, after considering the resale value to properties close to people looking at the evidence will arrive at the same value for the theirs, tripled the value of land on their general ledger and transaction. recorded a Gain on Value of Land (a revenue account). Principle of Conservatism Matching Principle Consistency Principle Principle of Conservatism Matching Principle Consistency Principle Objectivity Principle Revenue Recogition Convention Full Disclosure Principle Objectivity Principle Revenue Recogition Convention Full Disclosure Principle Materiality Principle Cost Principle Monetary Unit Assumption Materiality Principle Cost Principle Monetary Unit Assumption Business Entity Concept Time Period Concept Going Concern Concept Business Entity Concept Time Period Concept Going Concern Concept Expense Recognition Convention Expanse Recognition Convention Question 20 of 26 Question 22 of 26 i Select the matching Description for: Select the matching Description for: Accountants should apply the same methods and procedures from period to period. When changes are made, they must be explained Any and all information that affects the full understanding of a company's financial statements must be included with the financial clearly on the financial statements. statements. Principle of Conservatism Matching Principle Consistency Principle Principle of Conservatism Matching Principle Consistency Principle Objectivity Principle Revenue Recogntion Convention Full Disclosure Principle Objectivity Principle Revenue Reooghtion Convention Full Disclosure Principle Materiality Principle Cost Principle Monetary Unit Assumption Materiality Principle Cost Principle Monetary Unit Assumption Business Entity Concept Time Period Concept Going Concem Concept Business Entity Concept Time Period Concept Going Concur Concept Expanse Recognition Convention Expense Recognition Convention Question 21 of 26 Question 23 of 26Select the matching Case for: Select the matching Description for: A company has produced financial statements for years without any Accounting measures and reports the results of economic activities date or fiscal period identified on them. in terms of a stable monetary unit. Principle of Conservatism Matching Principle Consistency Principle Principle of Conservatism Matching Principle Consistency Principle Objectivity Principle Revenue Recogition Convention Full Disclosure Principle Objectivity Principle Revenue Recogition Comvention Full Disclosure Principle Materiality Principle Cost Principle Monetary Unit Assumption Materiality Principle Cost Principle Monetary Unit Assumption Business Entity Concept Time Period Concept Going Concom Concept Business Entity Concept Time Period Concept Going Concern Concept Expanse Rocognition Convention Expense Recognition Convention Question 24 of 26 Question 26 of 26 i Select the matching Case for: A company changed their method of amortizing every two years. Principle of Conservatism Matching Principle Consistency Principle Objectivity Principle Revenue Recogition Convention Full Disclosure Principle Materiality Principle Cost Principle Monetary Unit Assumption Business Entity Concept Time Period Concept Going Concern Concept Expense Recognition Convention Question 25 of 26