Match the Letter of Each Principle or Assumption or Qualitative

question 79

Multiple Choice

Match the letter of each principle or assumption or qualitative characteristic with the appropriate statement.
-Involves the relative size and importance of an item to a firm.

• 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:

Financial Data

Information related to the financial performance and position of a company, such as balance sheets, income statements, and cash flow statements.

Sales On Account

Transactions where goods are sold and payment is agreed to be made at a later date.

Cost Of Goods Sold

The total cost of manufacturing or acquiring products sold during a specific period, including materials, labor, and overhead.

Balance Sheet

A financial statement that summarizes a company's financial position at a specific point in time, detailing assets, liabilities, and shareholders' equity.