Match Each Definition with the Correct Term Below

question 35

Multiple Choice

Match each definition with the correct term below.
-Consistency

• A)Information should have direct bearing on a decision.
• B)The quality or accounting information that enables users to comprehend the meaning of the information they receive.
• C)The quality of accounting information that assures users that information as presented can be substantiated.
• D)The accounting convention that requires that once a company has adopted an accounting procedure,it must use it from one period to the next.
• E)The accounting convention that refers to the relative importance of an item or event.
• F)The accounting convention that states that when faced with choosing between two equally acceptable procedures or estimates,accountants should choose the one that is least likely to overstate assets and income.
• G)Cash and other assets that a company can reasonably expect to convert to cash,sell,or consume within one year or the company's normal operating cycle.
• H)Debts that fall due more than one year in the future or beyond the normal operating cycle.
• I)The amount that stockholders invest in the business.
• J)Gross sales less sales returns and allowances
• K)The amount a merchandiser paid for the merchandise it sold during an accounting period.
• L)The income from a company's main business.

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Definitions:

Clean Air

Air that is free of pollutants and contaminants, considered essential for health and environmental quality.

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be consumed by many people without diminishing its availability to others.

National Defense

The protection and defense of a country against foreign threats and aggression, typically through military means.

Marginal Cost

The cost of producing one additional unit of a good.