chpt 1 supp sol

chpt 1 supp sol - 5. c. Periodicity assumption 6. a....

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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.
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Exercise 1-12 Statement Assumption, Principle, Constraint 1. f. Realization principle 2. h. Full-disclosure principle 3. g. Matching principle 4. e. Historical cost principle
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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.

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chpt 1 supp sol - 5. c. Periodicity assumption 6. a....

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