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Match the Following Definitions with Terms 1 Through 8

Question 185

Matching

Match the following definitions with terms 1 through 8.Place the letter that identifies the best definition in the blank space next to the term.

Premises:

Responses:

Statement of cash flows

The governmental agency that has the legal authority to establish accounting rules.

Time period assumption

A report that describes a company's financial position at a point in time.

Generally accepted accounting principles

Presumes that the life of a company can be divided into periods for reporting purposes.

Statement of retained earnings

Describes a company's revenues and expenses and computes net income or loss over a period of time.

Securities and Exchange Commission

An independent group consisting of individuals from many countries that identify preferred accounting practices.

Balance sheet

Prescribes that assets and services to be recorded initially on a cash or equal-to-cash basis.

Measurement (Cost)principle

Prescribes that a company report the details behind financial statements that would impact user decisions.

Income statement

A financial statement that reports the changes in equity over the reporting period,excluding stockholder investments.

IASB

The concepts and rules that govern financial accounting.

Full disclosure principle

A report that identifies cash receipts and cash payments over a period of time.