PowerPoint handout - Accounting Educator

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Exercise 1‐9
a. The enterprise is separate from its owners and other entities – (8) economic entity assumption
b. A common denominator is the dollar – (7) monetary unit assumption
c. The entity will continue indefinitely – (6) going concern assumption
d. Record expenses in the period the related revenue is recognized – (1) expense recognition
e. The original transaction value upon acquisition – (3) historical cost principle
f. All information that could affect decisions should be reported –
(9) full disclosure principle
g. The life of an enterprise can be divided into artificial time periods – (2) periodicity
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h. Criteria usually satisfied for products at point of sale – (5) revenue recognition
i.
Concerns the relative size of an item and its effect on decisions – (4) materiality
© Dr. Chula King
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