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The following are characteristics, assumptions, principles, or constraints that guide the FASB when it creates

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The following are characteristics, assumptions, principles, or constraints that guide the FASB when it creates accounting standards.;Relevance;Faithful representation;Comparability;Consistency;Monetary unit assumption;Economic entity assumption;Expense recognition principle;Time period assumption;Going concern assumption;Historical cost principle;Full disclosure principle;Materiality;Match each item above with a description below.;1. Ability to easily evaluate one company?s results relative to another?s.;2. Belief that a company will continue to operate for the foreseeable future.;3. The judgment concerning whether an item's size is large enough to matter to decision-makers.;4. The reporting of all information that would make a difference to financial statement users.;5. The practice of preparing financial statements at regular intervals.;6. The quality of information that indicates the information makes a difference in a decision.;7. A belief that items should be reported on the balance sheet at the price that was paid to acquire the item.;8. A company?s use of the same accounting principles and methods from year to year.;9. Tracing accounting events to particular companies.;10. The desire to minimize bias in financial statements.;11. Reporting only those things that can be measured in monetary units.;12. Dictates that efforts (expenses) be matched with results (revenues).

 

Paper#80247 | Written in 18-Jul-2015

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