Match the concept or assumption to the area of theory that c

Match the concept or assumption to the area of theory that covers it. Click and drag the assumption/concept on the right to match the heading on the left. major accounting assumptions accrual basis and periodicity other basic accounting concepts articulation major principles materialism modifying concepts matching qualitative characteristics neutrality

Solution

Major accounting assumptions - Accrual basis and periodicity.

Major accoutning principles are the principles on which the accounting information is based. The major assumptions are accrual basis and periodicity. Under the accrual basis, the revenue and expesnes needs to be recorded when they are actually incurred whereas periodicity assumptions assumes that the reports needs to be prepared at a particular intervals.

Other basic accounting concepts - Materialism

Materialism means that all the material things needs to be reported.

Major principles - Matching

Matching is one of the major principles of accounting information under which the revenues needs to be matched up with the expenses.

Modifying concepts - Articulation

Articulation is the action through which all the three statements (Income statement, Balamce sheet and Cash flow statement) are tied together

Qualitative characteristics - Neutrality

Neutrality is one of the primary qualitative characteristics of accounting information. Under this the company needs to be neutral with the parties involved in accountinhg.