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For Each Financial Concept Listed Identify in Which Category It

Question 34

Matching

For each financial concept listed identify in which category it should be matched You may use each choice more than once or not at all.

Premises:

Responses:

Comparability

Similar events are measured using identical accounting methods from one period to the next.

Objectivity

Expense is recognized in the same period that its generated revenue is recognized.

Revenue recognition principle

Different firms use identical accounting methods to measure similar events.

Matching principle

Present value of future cash flows.

Consistency

Significant portion of effort made; major portion of cost incurred, objectively measured, and reasonably assured of ultimate cash receipt.

Reliable measure that is verified by documented evidence.

Premises:

Comparability

Objectivity

Revenue recognition principle

Matching principle

Consistency

Responses:

Similar events are measured using identical accounting methods from one period to the next.

Expense is recognized in the same period that its generated revenue is recognized.

Different firms use identical accounting methods to measure similar events.

Present value of future cash flows.

Significant portion of effort made; major portion of cost incurred, objectively measured, and reasonably assured of ultimate cash receipt.

Reliable measure that is verified by documented evidence.

Correct Answer:

Premises:

Responses:

Similar events are measured using identical accounting methods from one period to the next.

Expense is recognized in the same period that its generated revenue is recognized.

Different firms use identical accounting methods to measure similar events.

Present value of future cash flows.

Significant portion of effort made; major portion of cost incurred, objectively measured, and reasonably assured of ultimate cash receipt.

Reliable measure that is verified by documented evidence.