Question 1.1. (TCO A) Listed below are several informationcharacteristics and accounting principles and assumptions. Each ofthese items is assigned a number. Match the number of each with theappropriate phrase that states its application. Note: Each answermay be used multiple times.
Potential Matches: 1 : Historical cost principle
2 : Conservatism
3 : Materiality
4 : Industry practices or fair value principle
5 : Full disclosure principle
6 : Revenue recognition principle
Answer : Fair value changes are not recognized in the accountingrecords :
Lower of cost or market is used to value inventories :
Repair tools are expensed when purchased :
Agricultural companies use fair value for purposes of valuingcrops :
All significant post balance sheet events are reported :
Revenue is recorded at point of sale