Match Each Definition with the Correct Term Below

Multiple Choice

Match each definition with the correct term below.
-Materiality

A) Information should have direct bearing on a decision.
B) The quality or accounting information that enables users to comprehend the meaning of the information they receive.
C) The quality of accounting information that assures users that information as presented can be substantiated.
D) The accounting convention that requires that once a company has adopted an accounting procedure,it must use it from one period to the next.
E) The accounting convention that refers to the relative importance of an item or event.
F) The accounting convention that states that when faced with choosing between two equally acceptable procedures or estimates,accountants should choose the one that is least likely to overstate assets and income.
G) Cash and other assets that a company can reasonably expect to convert to cash,sell,or consume within one year or the company's normal operating cycle.
H) Debts that fall due more than one year in the future or beyond the normal operating cycle.
I) The amount that stockholders invest in the business.
J) Gross sales less sales returns and allowances
K) The amount a merchandiser paid for the merchandise it sold during an accounting period.
L) The income from a company's main business.