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

Solutions

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 month ago

Next > < Previous

Related Solutions

Match each of the following basic concepts and principles to the appropriate description. Conservatism Expense recognition...

Match each of the following basic concepts and principles to the appropriate description. Conservatism Expense recognition Consistency Materiality Disclosure The accountant should exercise the option that results in a lower balance of assets, lower net income or a higher balance of debt. Answer 1Choose...ConsistencyDisclosureExpense recognitionMaterialityConservatism The costs of doing business must be record in (or matched to) the same account period as the revenues which they helped to generate. Answer 2Choose...ConsistencyDisclosureExpense recognitionMaterialityConservatism This prevents people from changing accounting methods for...

Match each term or phrase with its correct description by writing the appropriate letter in the...

Match each term or phrase with its correct description by writing the appropriate letter in the blank: ………. Business objectives or mission ………. Management accounting ………. Income Statement ………. Long-term planning ………. Accounting ………. Accountability ………. Reliability ………. Maximising business wealth ………. Financial accounting ………. Control 1.A process and system for collecting, analysing and communicating economic information 2.Financial information provided to, and useful for, a broad range of users, including managers and others 3.General statements of the business’ aim, typically...

Match the following terms with the appropriate definition. - A. ...

Match the following terms with the appropriate definition. - A. B. C. D. E. Effective yield or interest rate - A. B. C. D. E. Monetary liability - A. B. C. D. E. Compound interest - A....

what is the revenue recognition principle and expense recognition principle? what is the accrual-basis accounting and...

what is the revenue recognition principle and expense recognition principle? what is the accrual-basis accounting and the cash-basis accounting? Adjusting entries- When and why should adjusting entries be prepared? What are the benefits of the adjusted-trial balance?

1. Explain Revenue Recognition methods (percentage of completion, completed production, traditional, installment) 2. Explain Expense Recognition...

1. Explain Revenue Recognition methods (percentage of completion, completed production, traditional, installment) 2. Explain Expense Recognition methods (cause & effect, rational & systematic, immediate recognition) 3. Describe Fair value hierarchy: Level 1 - observable (quoted prices), Level 2 (prices of similar items observable), Level 3 (non-observable – must base value on assumptions) 4. Identify the four basic assumptions of accounting: Economic entity, monetary unit, periodicity, and going concern 5. Recognize the two fundamental qualitative characteristics of financial reporting: Relevance and...

1.The revenue recognition standard, Revenue from Contracts with Customers, states a specific approach should be used...

1.The revenue recognition standard, Revenue from Contracts with Customers, states a specific approach should be used by companies to recognize revenue. The standard: a.Requires an asset-liability approach because an asset or a liability may stem from the terms of the contract and measuring the change in the asset or liability over the life of the contract results in a disciplined approach to measuring and recognizing revenue. b.Requires an earned-realized approach because the contract will result in revenue being earned and...

Question 6 (Q7) Match each of the following terms with the phrase that most closely describes...

Question 6 (Q7) Match each of the following terms with the phrase that most closely describes it. Each answer may be used only once. 1. Noncontrollable costs 2. Opportunity costs 3. Supply Chain Management systems 4. Sunk costs 5. Customer Relationship Management systems 6. Variable costs 7. Budgets 8. Controllable costs 9. Direct costs 10. Fixed costs 11. Incremental costs 12. Indirect costs 13. Enterprise Resource Planning system Costs that increase or decrease in total in response to increases or...

Match the following statements to the appropriate terms. 1. The difference between actual results and budgeted...

Match the following statements to the appropriate terms. 1. The difference between actual results and budgeted results. select an appropriate term Fixed overhead spending varianceVariable overhead efficiency varianceStatic budget varianceFlexible budget varianceDirect labor rate varianceSales volume varianceDirect labor efficiency varianceSales price varianceVariable overhead spending varianceDirect material quantity variance 2. Caused by using more or less material than the standard quantity allowed for...

Match the terms in bold to the appropriate blanks on the bottom to complete the sentences....

Match the terms in bold to the appropriate blanks on the bottom to complete the sentences. Terms can be used once, more than once, or not at all. charged tRNA elongation release initiation charged tRNAfmet termination During initiation a functional ribosome will contain the following components: mRNA, _________ , large and small ribosomal subunits, _________ factors, GTP, Mg2+. During elongation a functional ribosome will contain the following components: mRNA, _________ , large and small ribosomal subunits, _________ factors, GTP,Mg2+, peptidyl...

Match the following terms to the appropriate statement by placing the letter to the left of...

Match the following terms to the appropriate statement by placing the letter to the left of each statement. a. Breakeven graph f. Markup b. Breakeven point g. Margin of safety c. Cost-plus pricing h. Operating leverage d. Cost-volume-profit analysis i. Sales mix e. Degree of operating leverage j. Target costing ____ Sales revenue is exactly equal to total costs, and there is no profit or loss. ____ The difference between current sales and breakeven sales. ____ Analysis that helps managers...

Subjects