Identify the accounting assumption, accounting principle, or reporting constraint that mostappropriately justifies these procedures and practices. Use only one item per description.Choices:a. Full disclosure principleb. Time period assumptionc. Materiality constraintd. Cost principlee. Revenue recognition principlef. Conservatism constraintg. Matching principleh. Economic entity assumptioni. Monetary unitj. Going concernk. some other answer 1. Companies listed on the Philippine Stock Exchange report audited financial informationannually and report unaudited information quarterly.2. Small appliances used in food production by a multi millionaire restaurant are expensedwhen purchased. (Do not use conservatism.)3. A restaurant has traditionally used the straight line method to depreciate all its heavy dutykitchen equipment. This year it decides to start using the double declining balancedepreciation method on the same equipment. This change must be announced in thefinancial statements due to theprinciple.4. Retailers recognize revenue at the point of sale.5. A restaurant does not reduce the value of its glassware to liquidation value because of the_principle.

Accounting principles are those rules, regulations and guidelines which are used by the accountants…

Identify the accounting assumption, accounting principle, or reporting constraint that mos appropriately justifies these procedures and practices. Use only one item per description. Choices: a. Full disclosure principle b. Time period assumption c. Materiality constraint d. Cost principle e. Revenue recognition principle f. Conservatism constraint g. Matching principle h. Economic entity assumption i. Monetary unit j. Going concern k. some other answer

Identify the accounting assumption, accounting principle, or reporting constraint that mos appropriately justifies these procedures and practices. Use only one item per description. Choices: a. Full disclosure principle b. Time period assumption c. Materiality constraint d. Cost principle e. Revenue recognition principle f. Conservatism constraint g. Matching principle h. Economic entity assumption i. Monetary unit j. Going concern k. some other answer

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter2: Financial Reporting: Its Conceptual Framework

Section: Chapter Questions

Problem 2MC: Which of the following is considered a constraint on useful information by Statement of Financial...

See similar textbooks

Similar questions

Which of the following requires accounting information to be complete, neutral, and free from material error? a. Faithful representation concept b. Cost principle c. Economic entity assumption d. Going concern assumption
Listed below are several information characteristics and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application. (Items a through k may be used more than once.) a. Economic entity assumption b. Going concern assumption c. Monetary unit assumption d. Periodicity assumption e. Historical cost principle f. Revenue recognition principle g. Matching principle h. Full disclosure principle i. Relevance characteristic j. Reliability characteristic. k. Consistency characteristic 1. Stable-dollar assumption (do not use historical cost principle). 2. Earning process completed and realized or realizable. 3. Presentation of error-free information with representational faithfulness. 4. Yearly financial reports. 5. Accruals and deferrals in adjusting and closing process. (Do not use going concern.) 6. Useful standard measuring unit for business transactions. 7. Notes as part of necessary information to a fair presentation. 8. Affairs of…
Listed below are several information characteristics and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application. (Items a through k may be used more than once or not at all.) Economic entity assumption g. Matching principle Going concern assumption h. Full disclosure principle Monetary unit assumption i. Relevance characteristic Periodicity assumption j. Reliability characteristic Historical cost principle k. Consistency characteristic Revenue recognition principle ____ 1. Stable-dollar assumption (do not use historical cost principle). ____ 2. Earning process completed and realized or realizable. ____ 3. Presentation of error-free information with representational faithfulness. ____ 4. Yearly financial reports. ____ 5. Accruals and deferrals in the adjusting and closing process. (Do not use going concern.) ____ 6. Useful standard measuring unit for business…
Which concept states that any policies adopted for accounting should not change frequently unless it is the demand of the changing circumstances Oa. Cost Concept O b. Money Measurement Concept Oc. Consistency Concept O d. Going Concern Concept
eflects each situation. Principle or Assumption eports can be prepared for those Business entity assumption Expense recognition (matching) principle S. s reported. Going-concern assumption npact users' decisions. Measurement (cost) principle Monetary unit assumption
. MULTIPLE CHOICE. Choose the best answer among the following choices. Time Dor SLUIC Monetary Unit 7. The principle of objectivity includes the concept of A. Summarization B. Verifiability C. Classification D. Conservatism 8. The financial accounting information is directed toward the common needs of users and is independent of presumptions about particular needs and desires of specific users. A. Completeness B. Verifiability C. Relevance D. Neutrality 9. The attribute of relevance include ALL EXCEPT: minator. A. Predictive value B. Feedback value C. Materiality D. Neutrality 10. The assumption that an entity will continue to operate for the foreseeable future is called A. Accrual basis B. Comparability C. Going concern D. Cash basis
Which of the following sets includes only accounting assumptions and conventions? a. timeliness, prudence, historical cost, and neutrality b. matching, comparability, period of timem and reliability c. monetary unit, going concern, relevance, and materiality d. monetary unit, entity, going concern, and realization-recognition
A recognition test assists with deciding whether items should be included in the financial statements. Which characteristic of a financial statement does this refer to? O A. Reliable O B. Complete OC. Material O D. Neutral Type here to search
Which of the following requires accounting information to be complete, neutral, and free from material error? Faithful representation concept Cost principle Economic entity assumption Going concern assumption
Meaning of accounting principles with examples: i. Money measurement conceptii. Dual aspect concept iii. Objectivityiv. Historical cost
Which of the following is not an accounting assumption? Select one: a.Integrity. b.Economic entity. c. Going concern. d. Periodicity.
Which of the following facilitates the comparison of financial performance with one period to another period is possible ? O a. Historical cost concept O b. Going concern Assumption O c. Matching Concept O d. Consistency Principle