Match the Following Generally Accepted Accounting Principles with Their Definitions

question 7

Multiple Choice

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

• 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.

---

Definitions:

Internal Control

Measures and tactics adopted by an organization to safeguard the reliability of its financial and accounting data, foster responsibility, and avert deceit.

Materials Requisition Slip

A document used internally in a company to request materials or goods from the inventory or warehouse, specifying quantities and details needed for production.

Authorization

The formal or official approval, often required before an action or transaction can occur.

Job Cost Sheet

A document that records the costs related to a specific job or project, tracking materials, labor, and overhead.