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Match the Following with the Descriptions Below

Question 11

Matching

Match the following with the descriptions below.

Premises:
The concept that requires that the success or failure of the business be determined at regular intervals.
A system in which income is measured as the difference between the revenues earned and the expenses incurred during the period, regardless of when cash is paid or received.
A legal concept says the money invested in a corporation is at risk but investors' personal possessions are not at risk if the business fails.
The concept that requires an accounting system to reflect only information about the economic events that pertain to a particular entity.
The concept that asserts money is the common measurement unit.
The concept that assumes that, absent any information to the contrary, the business entity will continue to into the foreseeable future.
Responses:
Monetary Unit Concept
Periodicity Concept
Business Entity Concept
Accrual Basis of Accounting
Going Concern Concept
Limited Liability

Correct Answer:

The concept that requires that the success or failure of the business be determined at regular intervals.
A system in which income is measured as the difference between the revenues earned and the expenses incurred during the period, regardless of when cash is paid or received.
A legal concept says the money invested in a corporation is at risk but investors' personal possessions are not at risk if the business fails.
The concept that requires an accounting system to reflect only information about the economic events that pertain to a particular entity.
The concept that asserts money is the common measurement unit.
The concept that assumes that, absent any information to the contrary, the business entity will continue to into the foreseeable future.
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