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Unformatted text preview: 5. c. Periodicity assumption 6. a. Economic entity assumption 7. i. Cost effectiveness 8. j. Materiality 9. k. Conservatism 10. b. Going concern assumption 11. d. Monetary unit assumption Exercise 1-13 1. b 2. d 3. c 4. d 5. b 6. b Exercise 1-14 1. b. Accounting standards in the United States for nongovernmental entities are set primarily by private sector. The principle standard setters are the FASB and the AICPA’s AcSEC. 2. c. Accounting information is reliable if it is verifiable, is a faithful representation, and is reasonably free of error or bias. 3. c. The four fundamental recognition criteria are: 1) the item meets the definition of an element of financial statements, 2) the item has an attribute measurable with sufficient reliability, 3) the information is relevant, and 4) the information is reliable. In addition, revenue should be recognized when it is realized or realizable and earned....
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This note was uploaded on 07/08/2009 for the course ACCT 351 taught by Professor Staff during the Spring '08 term at George Mason.
- Spring '08
- Matching Principle