chpt 1 supp sol - Chapter 1 Supplemental Solutions Exercise 1-7 1 2 3 4 5 d b d b b Exercise 1-8 List A d g e i h c b a f 1 Matching principle 2 3 4 5 6

chpt 1 supp sol - Chapter 1 Supplemental Solutions Exercise...

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Chapter 1 Supplemental Solutions Exercise 1-7 1. d 2. b 3. d 4. b 5. b Exercise 1-8 List A List B d 1.Matching principle a. The enterprise is separate from its owners and other entities. g 2. Periodicity b. A common denominator is the dollar. e 3. Historical cost principle c. The entity will continue indefinitely. i 4. Materiality d. Record expenses in the period the related revenue is recognized. h 5. Realization principle e. The original transaction value upon acquisition. c 6. Going concern assumption f. All information that could affect decisions should be reported. b 7. Monetary unit assumption g. The life of an enterprise can be divided into artificial time periods. a 8. Economic entity assumption h. Criteria usually satisfied at point of sale. f 9. Full-disclosure principle i. Concerns the relative size of an item and its effect on decisions.
Exercise 1-12StatementAssumption, Principle, Constraint 1. f. Realization principle 2. h. Full-disclosure principle 3. g. Matching principle 4. e. Historical cost principle 5. c.

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