Fill in the Blanks Below with the Accounting Principle, Assumption

question 43

Short Answer

Fill in the blanks below with the accounting principle, assumption, or related item that BEST completes each sentence.
1. Recognition of revenue at the end of production is an allowable exception to the ______________________ principle.
2. Parenthetical balance sheet disclosure of the inventory method utilised by a particular company is an application of the _______________________ principle.
3. Corporations must prepare accounting reports at least yearly due to the _______________________ assumption.
4. Some costs, which give rise to future benefits cannot be directly associated with the revenues they generate. Such costs are allocated in a ____________________ and ______________________ manner to the periods expected to benefit from the cost.
5. _______________________ would allow the expensing of all repair tools when purchased, even though they have an estimated life of 3 years.
6. The ________________________ characteristic requires that the same accounting method be used from one accounting period to the next, unless it becomes evident that an alternative method will bring about a better description of a firm's financial situation.
7. _________________________ and _______________________ are the two primary qualities that make accounting information useful for decision making.
8. Information which helps users confirm or correct prior expectations has ________________________.
9. __________________________ enables users to identify the real similarities and differences in economic phenomena because the information has been measured and reported in a similar manner for different enterprises

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Definitions:

Profit

The financial gain achieved when the amount of revenue gained from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Unrealised

Refers to profits or losses that have occurred on paper due to changes in value but have not been realized through an actual transaction.

Consolidation

The process of combining the financial statements of separate but related entities to present as those of a single economic entity.

NCI

Non-Controlling Interest, a minority shareholding in a subsidiary not owned by the parent company, reflecting those shareholders' claim on assets and earnings.