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points Presented below are several qualitative characteristics, accounting principles, assumptions, and constraints. Match the letter of each with the appropriate statement. Don't use a letter more than once. Characteristic that permits users to identify similarities in and differences between two sets of economic phenomena. A Revenue recognition principle Information that is capable of making a difference in the decision 8. Faithful representation of users in their capacity as capital providers. Monetary unit assumption The basic assumption/principle that makes depreciation and o. Expense recognition principle amortization policies justifiable and appropriate E. Comparability A company provides supplementary information to explain the effects of financing arrangements Timeliness The principle/assumption that implies that officers' salaries are a Cost principle most often charged to the current period and not carried into future periods. # Understandability Characteristic that assures users that information represents the Economic entity assumption economic phenomena that it intends to represent. Periodicity assumption Characteristic that allows users to comprehend the meaning of * Full disclosure principle the information The principle/assumption that implies that economic activity can L. Verifiability be identified with a particular unit of accountability M Going concem assumption The principle/assumption that is applied when a company N. Relevance reports land on its statement of financial position at the amount paid to acquire it, even though the estimated fair value is greater

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