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Unformatted text preview: Worksheet Learning Objective: 01-C5 Match each of the descriptions with the principle or assumption it best reflects. Description Principle 1. Usually created by a pronouncement from an authoritative body. Specific accounting principle 2. Financial statements reflect the assumption that the business continues operating. Going-concern assumption 3. Derived from long-used and generally accepted accounting practices. General accounting principle 4. Every business is accounted for separately from its owner or owners. Business entity assumption 5. Revenue is recorded only when the earnings process is complete. Revenue recognition principle 6. Information is based on actual costs incurred in transactions. Cost principle 7. A company reports details behind financial statements that would impact users' decisions. Full disclosure principle 8. A company records the expenses incurred to generate the revenue reported. Matching principle...
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This note was uploaded on 08/09/2010 for the course ACCT 1 taught by Professor Ludwig during the Spring '10 term at Los Angeles City College.
- Spring '10