ACC-1A Lecture Notes - Lecture 10: Wrinkle, Income Statement

Match the accounting terminology to the definitions.

1. Conservatism

2. Materiality concept

3. Disclosure principle

4. Consistency principle

1. A business should report the least favorable figures in the financial statement when two or more possible options are presented.

2. A business’s financial statement must report enough information for outsiders to make knowledgeable decisions.

3. A business should use the same accounting methods and procedures from period to period.

4. A company must perform strictly proper accounting only for items that are significant to the business's financial situation.