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Presented below are several qualitative characteristics, accounting principles, assumptions, and constraints. Match the letter of each with the appropriate statement. Don't use a letter more than once. Characteristic that permits users to identify similarities in and A Relevance differences between two sets of economic phenomena. El Revenue recognition principle Information that is capable of making a difference in the decision of users in their capacity as capital providers. C Monetary unit assumption The basic assumption/principle that makes depreciation and D. Expense recognition principle amortization policies justifiable and appropriate. E. Understandability A company provides supplementary Information to explain the effects of financing arrangements. Timeliness The principle/assumption that implies that officers' salaries are G. Cost principle most often charged to the current period and not carried into future periods. H. Economic entity assumption Characteristic that assures users that information represents the . Verifiability economic phenomena that it intends to represent. J. Periodicity assumption Characteristic that allows users to comprehend the meaning of ki Faithful representation the information L. Going concern assumption The principle/assumption that implies that economic activity can be identified with a particular unit of accountability M. Comparability The principle/assumption that is applied when a company N. Full disclosure principle reports land on its statement of financial position at the amount paid to acquire it, even though the estimated fair value is greater

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