Listed below are some information, characteristics, and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application.

Listed below are some information, characteristics, and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application.

Potential Matches:

1 : Economic activity can be identified with a particular unit of accountability

2 : Affairs of the business distinguished from those of its owners

3 : Application of the same accounting principles as in the preceding year

4 : Business enterprise assumed to have a long life

5 : Presentation of error-free information with representational faithfulness

6 : Notes as part of necessary information to a fair presentation

7 : Money is the common denominator of economic activity and provides an appropriate basis for accounting measurement and analysis

8 : Earnings process completed and realized or realizable

9 : Valuing assets at amounts originally paid for them

10 : Implies that a company can divide its economic activities into artificial time periods

  Choices Answer

     : Consistency characteristic

     : Historical cost principle

     : Going concern principle

     : Periodicity assumption

     : Reliability characteristic

     : Economic entity assumption

     : Monetary unit assumption

     : Revenue recognition principle

     : Full disclosure principle

     : Economic entity assumption