Match the Following Generally Accepted Accounting Principles with Their Definitions

question 9

Multiple Choice

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

• 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.

Identify the legal requirements for organizations receiving federal money including prevailing wage laws (Davis-Bacon Act, Walsh-Healy Public Contracts Act).

Understand the concepts of exemption and nonexemption under the FLSA and their implications on employee compensation.

Comprehend the rationale and requirements of pay ratio reporting policies and their implications for organizational transparency.

Understand how to calculate 95% confidence intervals for sample means and interpret the results.

---

Definitions:

Null Hypotheses

A statistical hypothesis that assumes no effect or no difference in the case being studied.

Alternative Hypotheses

Hypotheses that are considered to be true if the null hypothesis is found to be false, indicating there is a statistical significance.

Sales

Transactions involving the exchange of goods or services for money, measuring the performance and success of a business.

Test Statistic F

A specific form of the test statistic used in ANOVA to determine if there are significant differences between the means of three or more groups.