Match the numbered statements below with the lettered terms

Match the numbered statements below with the lettered terms. An answer (letter) may used more than once, and some terms require more than one answer (letter).

1. Key ingredients in quality of relevance.
2. Traditional assumptions that influence the FASB's conceptual framework.
3. The idea that information should represent what it purports to represent.
4. An important constraint relating to costs and benefits.
5. An example of conservatism
6. The availability of information when it is needed.
7. Recording an item in the accounting records.
8. Determines the threshold for recognition.
9. Implies consensus.
10. Transactions between independent parties.

a) Cost-effectiveness
b) Representational faithfulness
c) Recognition
d) Verifiability
e) Time periods
f) Unrealized
g) Completeness
h) Timeliness
i) Materiality
j) Predictive value
k) Economic entity
l) Lower-of-cost-or-market rule
m) Phrenology
n) Arm's-length transactions


Click here for the solution: Match the numbered statements below with the lettered terms

Match each of the following six terms with the phrase that most closely describes it

Match each of the following six terms with the phrase that most closely describes it. Each answer below may be used only once.

______ 1. activity-based costing
______ 2. cost of goods available for sale
______ 3. period costs
______ 4. process costing system
______ 5. just-in-time system
______ 6. work in process

(A) Costs assigned to the goods produced; also known as manufacturing costs
(B) Materials costs that are not traced directly to products produced
(C) System that seeks to minimize Raw Materials Inventory and Work in Process Inventory
(D) Cost of items that are completed and transferred from Work in Process Inventory to Finished Goods Inventory
(E) Costs that are identified with accounting periods rather than with goods produced
(F) Actual overhead is greater than overhead that has been applied to products
(G) Method of assigning overhead costs that uses multiple allocation bases
(H) System that uses job-order sheets to collect costs for each individual job
(I) Cost of all materials and parts that are directly traced to the items produced
(J) Beginning balance in the Finished Goods Inventory plus cost of goods manufactured
(K) Overhead applied to products is greater than the actual overhead costs incurred
(L) Used by companies that produce large quantities of identical items
(M) Cost of all manufacturing activities other than direct material and direct labor
(N) Inventory account that contains the cost of goods that are only partially completed

Click here for the solution: Match each of the following six terms with the phrase that most closely describes it

Match the statement with the term most directly associated with it

DO IT! 9-4 Match the statement with the term most directly associated with it.

Goodwill Amortization
Intangible assets Franchise
Research and development costs

1. Rights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance.
2. The allocation of the cost of an intangible asset to expense in a rational and systematic manner.
3. A right to sell certain products or services, or use certain trademarks or trade names within a designated geographic area.
4. Costs incurred by a company that often lead to patents or new products. These costs must be expensed as incurred.
5. The excess of the cost of a company over the fair market value of the net assets acquired.

Click here for the solution: Match the statement with the term most directly associated with it