p8 - c The current-noncurrent classification of assets and...

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59. During the lifetime of an entity, accountants produce financial statements at arbitrary points in time in accordance with which basic accounting concept? a. Cost/benefit constraint b. Periodicity assumption c. Conservatism constraint d. Matching principle 60. What accounting concept justifies the usage of accruals and deferrals? a. Going concern assumption b. Materiality constraint c. Consistency characteristic d. Monetary unit assumption 61. The assumption that a business enterprise will not be sold or liquidated in the near future is known as the a. economic entity assumption. b. monetary unit assumption. c. conservatism assumption. d. none of these. 62. Which of the following is an implication of the going concern assumption? a. The historical cost principle is credible. b. Depreciation and amortization policies are justifiable and appropriate.
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Unformatted text preview: c. The current-noncurrent classification of assets and liabilities is justifiable and signify-cant. d. All of these. 63. Proponents of historical cost ordinarily maintain that in comparison with all other valuation alternatives for general purpose financial reporting, statements prepared using historical costs are more a. reliable. b. relevant. c. indicative of the entity's purchasing power. d. conservative. 64. Valuing assets at their liquidation values rather than their cost is inconsistent with the a. periodicity assumption. b. matching principle. c. materiality constraint. d. historical cost principle. 65. Revenue is generally recognized when realized or realizable and earned. This statement describes the a. consistency characteristic. b. matching principle. c. revenue recognition principle. d. relevance characteristic....
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This note was uploaded on 11/03/2011 for the course ACCT 3223 taught by Professor Peck during the Spring '11 term at Texas State.

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