MATCHING
Instructions: Designate the terminology that best represents the definition or statement given below by placing the identifying letter(s) in the space provided. No letter should be used more than once. Not all letters will be used.
A. Full disclosure principle
B. Internal control
C. Average cost method
D. Inventoriable costs
E. Last-in, first-out method
F. Matching principle
G. Conceptual framework
H. Materiality
I. Consistency
J. Monetary unit assumption
K. Nominal accounts
L. Periodic inventory system
M. Debit memorandum
N. Permanent accounts
O. Perpetual inventory system
P. Relevance
Q. Reliability
R. Revenue expenditure
S. Revenue recognition principle
T. Economic entity assumption
U. Time period assumption
V. First-in, first-out method
1. The principle that efforts be matched with accomplishments.
2. Use of the same accounting principles and methods from period to period by the same business enterprise.
3. A coherent system of interrelated objectives and fundamentals that can lead to consistent standards.
4. An inventory costing method which assumes that the latest units purchased are the first to be allocated to cost of goods sold.
5. An assumption that economic events can be identified with a particular unit of accountability.
6. A characteristic of information which means it is capable of making a difference in a decision.
7. An assumption that the economic life of a business can be divided into artificial time periods.
8. A system in which detailed records are not maintained and cost of goods sold is determined only at the end of an accounting period.
9. The methods and measures adopted within a business to safeguard its assets and enhance the accuracy and reliability of its accounting records.
10. Revenue, expense, and dividends accounts whose balances are transferred to retained earnings at the end of an accounting period.