60.1K

Verified Solution

Link Copied!

Match the following

A.	Estimates and Judgments
B.	Conservatism
C.	Periodicity
D.	Measurement
E.	Materiality
F.	Accounting Entity
G.	Going Concern
H.	Consistency
I.	Historical Cost
J.	Units of Measure

1. The business unit for which the financial statements are being prepared
2. Accountants assume that the life of the business entity is infinitely long and will never dissipate.
3. Accounting only deals with things that can be measured, quantifiable. Therefore, aspects that are crucial to profits may be overlooked such as customer loyalty.
4. The US Dollar (USD) is the standard value used in financial statements for companies in the United States. Any foreign transactions must be translated to USD based on the current exchange rate.
5. The transactions that results in what a business owns and owes are recorded at their original cost. This may cause the companys books to be understated.
6. This concept allows you to violate another accounting principle if the value is so tiny that the financial reports will not have an impact. When to apply this concept is a judgment call by the accountant.
7. Complexity and uncertainty make it impossible to be exacting in many cases. It is legal, if the accounting is the best you can do, the expected error would not affect the financial reports and the guesses are consistent for each period.
8. Each individual enterprise must choose a single method of accounting and reporting consistently over time.
9. Accountants must agree more with an understatement than an overvaluation. This accounting guideline states that if doubt exists between two alternatives, the accountant should choose the result with a lesser asset amount and/or a lesser profit.
10. Is the activity within the scope of an accounting period that must be recorded within the time period on a financial statement. Normally the life of a business can be divided into periods of time (month, quarter or year).

Answer & Explanation Solved by verified expert

See Answer