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exam1lastpage - 3(8 Points Listed below are several...

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Unformatted text preview: 3. (8 Points) Listed below are several information characteristics and accounting principles and assumptions. State the accounting assumption, principle, information characteristic, or constraint that is most applicable in the following cases. (Items may be used more than once or not at all.) Economic entity assumption Matching principle Going concern assumption Full disclosure principle Monetary unit assumption Relevance characteristic Periodicity (or time period) assumption Reliability characteristic Historical cost principle Consistency characteristic Revenue recognition principle Conservatism principle Industry practices principle Materiality principle is . 192/1 I 9 1. Significant post-balance sheet events are reported. ' FM“ 0‘5 U?» , 2. Anticipate all possible losses, but no gains. .. 00 n 5“ u 9"?” . weal/H 3. Justifies the use of consolidated financial statements for reporting. - 1;” EMF”, ‘ 4. Certain assets are capitalized and then written off or amortized over assumed periods M w A‘ benefited. Anti-pk; t) 4. (IZKPoints) Reed Co. wishes to enter receipts and payments in such a manner that adjustments at the end of the period could be reversed at the beginning of the next period. Record the following transactions in the desired manner and give the adjusting entry on December 31, 2006 and the reversing entry on January 1, 2007. P" We 1. An insurance policy for two years was acquired on April 1, 2006 for $3,600. 2. Rent of $4,500 for six months for a portion of the building was received on November 1,2006. p‘t pawl 3;», 36:35) (75“ I“ ‘t 9" - W;me.¢g/ (mk— ‘aé J R‘s-00 '7‘} .5 6" P (/AELJMRflgiiiV Bee g 3’09 Pref?“ 3c! ”“4 Don’t forget to transfer all answers to the separate answer sheets! a. $000 3A5 5m 13cm: \. PM Poikins , 3&0?) Omsk 34,00 ...
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