Match the Letter of Each Principle or Assumption or Qualitative

question 78

Multiple Choice

Match the letter of each principle or assumption or qualitative characteristic with the appropriate statement.
-The decision is made to accept some inaccuracy because of incomplete information about the future in exchange for more timely reporting.

• A)Business entity
• B)Going concern
• C)Time period
• D)Monetary unit
• E)Historical cost
• F)Conservatism
• G)Realization
• H)Consistency
• I)Full disclosure
• J)Verifiability
• K)Materiality
• L)Industry practices

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Definitions:

Target Firm

A company that is the subject of a takeover attempt or acquisition interest by another company.

Management Team

The group of individuals who oversee the operations of a business and make high-level strategic decisions.

Tender Offer

A proposal made publicly by an individual or company to purchase shares from shareholders of a public corporation at a specified price within a certain time frame.

Net Gain

The positive difference between the sale price of an asset after deducting all costs associated with the sale and the original purchase price, reflecting a financial benefit.