Question

In: Accounting

Match the terms with the appropriate phrase thay states its application. 1. Revenue and expense recognition...

Match the terms with the appropriate phrase thay states its application.

1. Revenue and expense recognition principles

2. Revenue recognition phrase

3. Materiality

4. Economic entity assumption

5. Industry practices or fair value principles

6. Periodicity assumption

7. Expense recognition principle

8. Historical cost principle

9. Conservatism

10. Full disclosure principle

match with

a. Agricultural companies use fair value for purposes of valuing crops

b. Rationale for accrual accounting

c. repair tools are expensed when purchased

d. financial information is presented so that investors will not be misled

e. intagible assets are capitalized and amortized over periods benefited

f. revenue is recorded at point of sale

g. the use of consolidated statements is justified

h. reporting must be done at defined time intervals

i. fair value changes are not recognized in the accounting records

j. lower cost or market is used to value inventories

Expert Solution

1. Revenue and expense recognition principles	b. Rationale for accrual accounting
2. Revenue recognition phrase	f. revenue is recorded at point of sale
3. Materiality	c. repair tools are expensed when purchased
4. Economic entity assumption	g. the use of consolidated statements is justified
5. Industry practices or fair value principles	a. Agricultural companies use fair value for purposes of valuing crops
6. Periodicity assumption	h. reporting must be done at defined time intervals
7. Expense recognition principle	e. intagible assets are capitalized and amortized over periods benefited
8. Historical cost principle	i. fair value changes are not recognized in the accounting records
9. Conservatism	j. lower cost or market is used to value inventories
10. Full disclosure principle	d. financial information is presented so that investors will not be misled

ekkarill92 answered 1 year ago

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