Accounting Peregrine Exam Questions With Verified Solutions

Accounting Peregrine Exam Questions With Verified Solutions Relevance - answerThe quality of information that indicates the information makes a difference in a decision. Reliability - answerthe quality of information that gives assurance that it is free of error and bias Comparability - answerAbility to compare the accounting information of different companies because they use the same accounting principles. Consistency - answeruse of the same accounting principles and methods from year to year within a company Monetary Unit Assumption - answerOnly items that be expressed in money are included in the accounting records Economic Entity Assumption - answerevery economic entity can be separately identified and accounted for Time Period - answerThe life of a business is divided into meaningful time periods for financial reporting Going Concern Assumption - answerEntity will continue to operate long enough to recover the cost of its assets Revenue Recognition Principle - answera revenue should be recorded when a resource has been earned Matching - answerExpenses are matched with related values in the same accounting period Cost Principle - answerA principle that states that acquired assets and services should be recorded at their actual cost. Full Disclosure Principle - answerA company reports details behind financial statements that would impact users' decisions. Materiality Constraint - answerWhether an item was large enough to likely influence the decision of investor or creditor