Matching
Match the term and the definition.Not all definitions will be used.
Premises:
Consistency
Historical cost principle
Reliability
Liquidity
Trend analysis
Ratio analysis
Profitability
Solvency
Going-concern problem
Responses:
The constraint that financial data needs to be similar to other firms in the industry.
Also known as time-series analysis.
The principle that companies should record transactions at the cash-equivalent cost on the date of the transaction.
Measures that relate one financial variable to another from the same financial statement.
A measure of long-run survivability.
An analysis that compares a company's results to other companies in the industry.
The characteristic of financial reporting that requires a company to use the same principles over time to measure financial data.
The characteristic that financial information needs to be valuable to decision makers.
The principle that companies need to adjust their accounts for inflation.
The difficulties a company faces in acquiring financing when first starting up.
A measure of current earnings performance.
The ability of a company to meet its short-run financial obligations.
When a company's near-term financial survival is questionable.
The principle that revenues should be recognized immediately upon payment.
The characteristic that financial results should be able to be independently verified.
The principle that revenue should be recorded when earned,provided payment is reasonably expected.
Correct Answer:
Premises:
Responses:
The constraint that financial data needs to be similar to other firms in the industry.
Also known as time-series analysis.
The principle that companies should record transactions at the cash-equivalent cost on the date of the transaction.
Measures that relate one financial variable to another from the same financial statement.
A measure of long-run survivability.
An analysis that compares a company's results to other companies in the industry.
The characteristic of financial reporting that requires a company to use the same principles over time to measure financial data.
The characteristic that financial information needs to be valuable to decision makers.
The principle that companies need to adjust their accounts for inflation.
The difficulties a company faces in acquiring financing when first starting up.
A measure of current earnings performance.
The ability of a company to meet its short-run financial obligations.
When a company's near-term financial survival is questionable.
The principle that revenues should be recognized immediately upon payment.
The characteristic that financial results should be able to be independently verified.
The principle that revenue should be recorded when earned,provided payment is reasonably expected.
Premises:
The constraint that financial data needs to be similar to other firms in the industry.
Also known as time-series analysis.
The principle that companies should record transactions at the cash-equivalent cost on the date of the transaction.
Measures that relate one financial variable to another from the same financial statement.
A measure of long-run survivability.
An analysis that compares a company's results to other companies in the industry.
The characteristic of financial reporting that requires a company to use the same principles over time to measure financial data.
The characteristic that financial information needs to be valuable to decision makers.
The principle that companies need to adjust their accounts for inflation.
The difficulties a company faces in acquiring financing when first starting up.
A measure of current earnings performance.
The ability of a company to meet its short-run financial obligations.
When a company's near-term financial survival is questionable.
The principle that revenues should be recognized immediately upon payment.
The characteristic that financial results should be able to be independently verified.
The principle that revenue should be recorded when earned,provided payment is reasonably expected.
Responses:
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