Match the following terms with the appropriate definition.

Question

A) The governmental agency that has the legal authority to establish accounting rules.
B) A principle that requires the information in financial statements to be supported by
independent unbiased evidence.
C) An independent group consisting of individuals from many countries that identify preferred
accounting practices.
D) Prescribes that a company report the details behind financial statements that would impact
user decisions.
E) The concepts and rules that govern financial accounting.
F) A financial statement that reports the changes in equity over the reporting period; including
increases from net income and decreases from dividends or net losses.
G) Presumes that the life of a company can be divided into periods for reporting purposes.
H) Prescribes that assets and services to be recorded initially on a cash or equal-to-cash basis.
I) A report that describes a company's financial position at a point in time.
J) A report that identifies cash receipts and cash payments over a period of time.

1. Generally accepted accounting principles
2. Time period assumption
3. Statement of retained earnings.
4. Balance sheet
5. Objectivity principle
6. Measurement (Cost) principle
7. Securities and Exchange Commission
8. IASB
9. Full disclosure principle
10. Statement of cash flows

Answer 1

1. E
2. G
3. F
4. I
5. B
6. H
7. A
8. C
9. D
10. J