ACCOUNTING PEREGRINE EXAM
1. Relevance
Answer The quality of information that indicates the information makes a ditterence in a decision.
2. Reliability
Answer the quality of information that gives assurance that it is free of error and bias
3. Comparability
Answer Ability to compare the accounting information of ditterent companies because they use the
same accounting principles.
4. Consistency
Answer use of the same accounting principles and methods from year to year within a company
5. Monetary Unit Assumption
Answer Only items that be expressed in money are included in the accounting
records
6. Economic Entity Assumption
Answer every economic entity can be separately identified and accounted for
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, 7. Time Period
Answer The life of a business is divided into meaningful time periods for financial reporting
8. Going Concern Assumption
Answer Entity will continue to operate long enough to recover the cost of its assets
9. Revenue Recognition Principle
Answer a revenue should be recorded when a resource has been earned
10. Matching
Answer Expenses are matched with related values in the same accounting period
11. Cost Principle
Answer A principle that states that acquired assets and services should be recorded at their actual
cost.
12. Full Disclosure Principle
Answer A company reports details behind financial statements that would impact users' decisions.
13. Materiality Constraint
Answer Whether an item was large enough to likely influence the decision of investor or creditor
14. Cost-Benefit constraint
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1. Relevance
Answer The quality of information that indicates the information makes a ditterence in a decision.
2. Reliability
Answer the quality of information that gives assurance that it is free of error and bias
3. Comparability
Answer Ability to compare the accounting information of ditterent companies because they use the
same accounting principles.
4. Consistency
Answer use of the same accounting principles and methods from year to year within a company
5. Monetary Unit Assumption
Answer Only items that be expressed in money are included in the accounting
records
6. Economic Entity Assumption
Answer every economic entity can be separately identified and accounted for
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, 7. Time Period
Answer The life of a business is divided into meaningful time periods for financial reporting
8. Going Concern Assumption
Answer Entity will continue to operate long enough to recover the cost of its assets
9. Revenue Recognition Principle
Answer a revenue should be recorded when a resource has been earned
10. Matching
Answer Expenses are matched with related values in the same accounting period
11. Cost Principle
Answer A principle that states that acquired assets and services should be recorded at their actual
cost.
12. Full Disclosure Principle
Answer A company reports details behind financial statements that would impact users' decisions.
13. Materiality Constraint
Answer Whether an item was large enough to likely influence the decision of investor or creditor
14. Cost-Benefit constraint
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