ACCT 201 – Old Dominion University – Final Exam Study Guide
and Key Concepts
Revenue Recognition Principle - correct answer ✔✔ The principle that requires revenue to be
recognized when earned
Business Entity Principle - correct answer ✔✔ The principle that requires a business to be
accounted for separately from its owners and from any other entity
Monetary Unit Principle - correct answer ✔✔ The principle that assumes transactions and
events can be expressed in money units
Measurement (Cost) Principle - correct answer ✔✔ The principle that prescribes financial
statement information to be based on actual costs incurred in business transactions
Objectivity Principle - correct answer ✔✔ The principle that prescribes independent, unbiased
evidence to support financial statement information
Matching Principle - correct answer ✔✔ The principle that requires expenses to be reported in
the same period as the revenues that were earned as a result of the expenses
Time Period Assumption - correct answer ✔✔ A principle that assumes that an organization's
activities can be divided into specific time periods such as months, quarters, or years
Full Disclosure Principle - correct answer ✔✔ The principle that requires a company to report
the details behind financial statements that would impact users' decisions
Going Concern Principle - correct answer ✔✔ The assumption that the business will continue
operating instead of being closed or sold
and Key Concepts
Revenue Recognition Principle - correct answer ✔✔ The principle that requires revenue to be
recognized when earned
Business Entity Principle - correct answer ✔✔ The principle that requires a business to be
accounted for separately from its owners and from any other entity
Monetary Unit Principle - correct answer ✔✔ The principle that assumes transactions and
events can be expressed in money units
Measurement (Cost) Principle - correct answer ✔✔ The principle that prescribes financial
statement information to be based on actual costs incurred in business transactions
Objectivity Principle - correct answer ✔✔ The principle that prescribes independent, unbiased
evidence to support financial statement information
Matching Principle - correct answer ✔✔ The principle that requires expenses to be reported in
the same period as the revenues that were earned as a result of the expenses
Time Period Assumption - correct answer ✔✔ A principle that assumes that an organization's
activities can be divided into specific time periods such as months, quarters, or years
Full Disclosure Principle - correct answer ✔✔ The principle that requires a company to report
the details behind financial statements that would impact users' decisions
Going Concern Principle - correct answer ✔✔ The assumption that the business will continue
operating instead of being closed or sold
