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Unformatted text preview: Full-disclosure principle 3. Cause-and-effect relationship between revenues and expenses. –g. Matching principle 4. The basis for measurement of many assets and liabilities. –d. Monetary unit assumption 5. Relates to the qualitative characteristic of timeliness. –c. Periodicity assumptions 6. All economic events can be identified with a particular entity. –a. Economic entity assumption 7. The benefits of providing accounting information should exceed the cost of doing so. –i. Cost effectiveness 8. A consequence is that GAAP need not be followed in all situations. –j. Materiality 9. Not a qualitative characteristics, but a practical justification for some accounting choices. –k. Conservatism 10. Assumes the entity will continue indefinitely. –b. Going concern assumption 11. Inflation causes a violation of this assumption. –e. Historical cost principle...
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- Spring '11
- Economics, Generally Accepted Accounting Principles, International Financial Reporting Standards, Financial Accounting Standards Board, financial accounting standards