Accounting Peregrine Exam – Questions and Correct Answers

Accounting Peregrine Exam
Questions And Correct Answers


Relevance

The quality of information that indicates the information makes a difference in a
decision.




Reliability

the quality of information that gives assurance that it is free of error and bias




Comparability

Ability to compare the accounting information of different companies because they use
the same accounting principles.




Consistency

use of the same accounting principles and methods from year to year within a company




Monetary Unit Assumption

Only items that be expressed in money are included in the accounting records

, Economic Entity Assumption

every economic entity can be separately identified and accounted for




Time Period

The life of a business is divided into meaningful time periods for financial reporting




Going Concern Assumption

Entity will continue to operate long enough to recover the cost of its assets




Revenue Recognition Principle

a revenue should be recorded when a resource has been earned




Matching

Expenses are matched with related values in the same accounting period




Cost Principle