Match the Following Generally Accepted Accounting Principles with Their Definitions

question 11

Multiple Choice

Match the following generally accepted accounting principles with their definitions.
-__ Consistency

• A) The value of what was given up to acquire the item.
• B) In reporting the financial position of the organization, sufficient consideration should be given to the various risks the organization faces.
• C) To avoid misleading users of financial reports, organizations should generally use the same accounting methods from period to period.
• D) Financial statements are prepared based on the assumption that the organization will remain in business for the foreseeable future. If that is not likely to be the case, it must be disclosed.
• E) Financial reports should disclose any information needed to ensure that the reports are a fair presentation.
• F) An error is large enough to be a concern if any individual would make a different decision based on the incorrect information resulting from the error than if he or she possessed the correct information.
• G) Expenses should be recorded in the same accounting period as the revenues that they were responsible for generating.
• H) Financial report should be based on such evidence as reasonable individuals could all agree upon within relatively narrow bounds.

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Definitions:

Psychology

The scientific study of the mind and behavior, encompassing various aspects of conscious and unconscious experiences as well as thought processes.

Philosophy

The study of the fundamental nature of knowledge, reality, and existence, especially when considered as an academic discipline.

Organizational Turnover

The rate at which employees leave a company and are replaced by new employees, which can affect an organization's operational efficiency and culture.

Performance Appraisal

The evaluation of a person’s performance.