The Accounting Principle Violated If Temporary Differences Are Not Taken

question 29

Multiple Choice

The accounting principle violated if temporary differences are not taken into account is the

• A)historical cost principle.
• B)matching principle.
• C)conservatism principle.
• D)cost/benefit principle.

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Definitions:

Types of Leases

Refers to the various classifications of rental agreements based on duration, manner of rent calculation, and other conditions, such as fixed-term, periodic, or at-will leases.

Assignment

The transfer of rights, property, or obligations from one party to another, typically seen in contracts and agreements.

Sublease

A transfer of less than all of a tenant’s interest in a leased property.

Assignee

In a contract, the party who receives the rights of another party (an assignor) to collect what was contractually agreed on in the original contract.