These principles guide the methods and decisions for a business over a short and ................. term.

For both internal and ................. reporting purposes, it is important to understand the principles of

accounting because they serve as guidelines to the analysis of financial reporting issues.

In order to make this language to convey the same meaning to all people, it is necessary that it

should be ................. on certain uniform scientifically laid down standards.

The matching concept does not mean that revenues and ................. for a period are equal.

A fair presentation of the results of a firm’s operations during a period of time requires that all

expenses incurred in generating that period’s revenues be ................. from the revenues earned.

Pending lawsuits, ................. transactions, or other conditions may have imminent and significant

effects on the company's financial status.

Footnotes supplement financial statements ................. this information and to describe the policies

the company uses to record and report business transactions.

The financial statement user relies on these concepts and principles related to the accounting

period when making ................. and informed decisions about an entity’s financial position and

results of operations.

Accounting principles are the essential guidelines ................. which businesses prepare their

financial statements.

The historical cost principle deals with the valuation of both ................. and liabilities.

The historical performance of a company is readily available, but examining the numbers does

not always provide the entire ................. picture of a company.

Every country has its own ................. accounting practice of GAAP with standards set by a

national governing body (National GAAP).

Generally Accepted Accounting Principles (GAAP) is the standard framework of ................. for

financial accounting, mainly used in the U.S.A.

Those who must rely on such information have a ................. to be assured that the data are free

from bias and inconsistency.

Many countries use the International Financial Reporting Standards, established and .................

by the International Financial Reporting Standards Board.

It includes the standards, conventions, and rules accountants follow in recording and

summarizing transactions, and in the ................. of financial statements.

All past, present and future information may have ................. an impact on the financial

performance of the company needs to be fully disclosed.

With the ................. of global standards, fair value is used more in the United States to value

elements of financial statements.

The expense or cost of doing business is recorded in the same period as the revenue that has been

generated ................. the result of incurring that cost.

Selling of goods in large quantities to shopkeepers for resale to the public

The total annual income of a state or an organization

. To make something known in public

To instruct somebody to act or vote in a certain way

Additional piece of information at the bottom of a page in a book

The price at which the product is sold

Operating expenses of a business, such as property taxes, foremen’s salaries that are not

chargeable to any one department or product.

A record of goods on hand that is maintained by a business.

Calculating and controlling the cost of a unit – a single item or a group of items – of a

product, service, or operation of a business.

The left-hand column of an account

The theory of keeping financial records

A reduction in the price which is offered to customers.

Accountants who are studying for professional examinations.

A record of money received and spent

Companies make this when they sell their goods for less than it costs them to make them.

A thing that one gains from something

To change from one form or use to another

A cost system that provides an average fixed cost for a product or process.

The amount of tax that you have to pay

Money that the government gives back to you when you pay too much in taxes, or have withheld

too much from your salary.

The principles, procedures and standards that make up the generally ________ (accept) accounting

principles were chosen with the purpose of ensuring that organizations lean in the direction of openness

when deciding how to provide information to observers.

The standards make it more difficult for organizations to misdirect observers and to fool them with data

that does not have ________ (sufficiency) relevancy.

An absence of accounting standards would make the work of ________ (invest), regulators, taxpayers,

reporters and others more difficult and more risky.

In the United States, the dollar is the unit of measurement for all transactions. No ________ (adjust) is

made for changes in the purchasing power of the dollar.

Matching revenue and expense is necessary if the ________ (result) of the firm’s operations are to reflect

accurately its economic activities during the period.

Revenue is recognized at the time of sale, which is when title to the product being________ (sell) passes

from the seller to the buyer or when the services involved in the transaction have been performed.

Financial data must be reported for particular periods because it is necessary to understand the ________

(accrue) and deferral

The________ (regulate) of imports is often based on the financial information about the businesses in an

industry

A trading profit and loss account serves two purposes: ________ (compute) net income for the period and

identifying major revenue and expense items that affect net income.

The interest rates paid by banks ________ (variety) from bank to bank, depending on how long

customers leave their money in the bank: short, medium or long term.