US GAAP Principles

What must use the same method for all subsequent events?

• Consistency Principles

• Time Period Assumption

• Conservatism Principle

• Going Concern Assumption

To ensure that the financial information provided by an organization is beneficial enough to justify the cost of preparing it.

• Conservatism Principle

• Consistency Principle

• Cost-Benefit Relationship

• Materiality

Companies must fully disclose information that may impact decisions of users of financial information.

• Cost Principle

• Going Concern Assumption

• Matching Principle

• Disclosure Principle

Accounting records that are kept for entities and not the people who own or run the company.

• Entity Assumption

• Cost Principle

• Monetary Unit Assumption

• Time Period Assumption

What defines a specific interval of time for which an entity's reports are prepared?

• Monetary Unit Assumption

• Going Concern Assumption

• Entity Assumption

• Time Period Assumption

Financial statements are prepared with the expectation that a business will remain in operation indefinitely.

• Cost Principle

• Monetary Unit Assumption

• Going Concern Assumption

• Disclosure Principle

These are recognized when they are earned or realized.

• Materiality

• Revenue Recognition Principle

• Disclosure principle

• Matching Principle

What requires that revenues and related expenses be recorded in same accounting period to avoid overstatement?

• Cost-Benefit Relationship

• Revenue Recognition Principle

• Disclosure Principle

• Matching Principles

What requires an organization to select the accounting method that is least likely to overstate assets and understate liabilities?

• Disclosure Principle

• Matching Principle

• Conservatism Principle

• Consistency Principle

What accounting practice states that an organization only records events that are significant enough to justify the usefulness of information?

• Materiality

• Matching Principle

• Entity Assumption

• Monetary Unit Assumption