Match each of the following statements with the appropriate accounting concept. Some concepts may be used more than once, while others may not be used at all. Use the notations shown to indicate the appropriate accounting concept.
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Accounting Concept
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Notation
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Accounting period concept
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P
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Adequate disclosure concept
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D
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Business entity concept
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B
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Cost concept
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C
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Going concern concept
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G
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Matching concept
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M
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Objectivity concept
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O
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Unit of measure concept
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U
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Question 7 options:
This concept supports relying on an independent actuary (statistician), rather than the chief operating
If this concept was ignored, the confidence of users in the financial statements could not be maintained
Material litigation involving the corporation is described in a note.
Land worth $800,000 is reported at its original purchase price of $220,000.
Assume that a business will continue forever.
Monthly utilities costs are reported as expenses along with the monthly revenues.
The changes in financial condition are reported at the end of the month.
Changes in the use of accounting methods from one period to the next are described in the notes to the financial statements.
This concept justifies recording only transactions that are expressed in dollars.
Personal transactions of owners are kept separate from the business.