week 2 E1-8 - d Record expenses in the period the related...

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E 1-8 Basic assumptions, principles, and constraints LO6 through LO8 Listed below are several terms and phrases associated with basic assumptions, underlying principles, and constraints. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it. 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
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Unformatted text preview: 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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