Match the Letter of Each Principle or Assumption or Qualitative

question 32

Multiple Choice

Match the letter of each principle or assumption or qualitative characteristic with the appropriate statement.
-The primary value that is used for financial statements.

• 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:

Net Benefits

The net gain from a decision or action, calculated by subtracting the total costs from the total benefits.

Industrial Regulation

Governmental regulation of industries to ensure competition, protect consumers, and maintain ethical and safe business practices.

Regulatory Commissions

Government agencies responsible for overseeing and regulating specific industries or economic sectors to ensure fair practices and protect public interests.

Food and Drug Administration

A federal agency of the United States responsible for protecting and promoting public health through the control and supervision of food safety, tobacco products, dietary supplements, prescription and over-the-counter pharmaceutical drugs, vaccines, biopharmaceuticals, blood transfusions, medical devices, electromagnetic radiation emitting devices, cosmetics, and veterinary products.