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:

Accounts Receivable Turnover

A financial metric that measures the efficiency with which a company collects on its receivables or the credit it extends to customers by calculating the number of times receivables are turned over during a given period.

Acceleration

The rate at which an object's velocity changes over time, often measured in meters per second squared in the physical sciences or in speeding up processes within various fields.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and operational efficiency of the business.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to fund operations.