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Accounting Principles & Assumptions questions and answers
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  • Grado
  • Accounting Principles
  • Institución
  • Minnesota School Of Business

Measurement Principle Records assets in the accounting records at their cost or purchase price Revenue (Revenue Recognition) Principle States that revenue is recognized when it is earned Matching Principle Reports the expenses incurred in generating the revenue in the same period a...

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Información del documento

  • 5 de octubre de 2023
  • 2
  • 2023/2024
  • Examen
  • Preguntas y respuestas

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  • accounting principles assumptions

Escuela, estudio y materia

  • Minnesota School Of Business
  • Accounting Principles
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Accounting Principles exam questions with 100% correct answers
Compatibility Principle - answer Information system principle that prescribes an accounting system to conform with a company's activities, personnel, and structure.
Conservatism Constraint - answer Principle that prescribes the less optimistic estimate when two estimates are about equally likely.
Consistency Concept - answer Principle that prescribes use of the same accounting methods over time so that financial statements are comparable across periods.
Control Principle - answer Information system principle that prescribes an accounting system to aid managers in controlling and monitoring business activities.
Cost-benefit Principle - answer Information system principle that prescribes the benefits from an activity in an accounting system to outweigh the costs of that activity.
Cost-benefit Constraint - answer The notion that the benefit of a disclosure exceeds the cost of the disclosure.
Cost Principle - answer Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Flexibility Principle - answer Information system principle that prescribes an accounting system be able to adapt to changes in the company, its operations, and needs of decision makers.
Full Disclosure Principle - answer Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.

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