Match the Following Generally Accepted Accounting Principles with Their Definitions

question 6

Multiple Choice

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

• 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:

Government Franchises

Government franchises are rights or licenses granted by the government to entities, allowing them to operate specific services or activities under regulation.

Perfect Knowledge

A theoretical concept where all consumers and producers have complete and instantaneous information about all aspects of the market.

Differentiation

Differentiation is a strategy used by businesses to distinguish their products or services from those of competitors, often through unique features, quality, or branding.

Average Revenue

The total revenue generated by a company divided by the number of units sold, indicating the revenue generated per unit.