Chapter 7-class

Question 1

the percentage relationship between one financial statement item and the total that includes that item

Answer 1

component percentage

Question 2

any persons or groups who will be affected by an action

Answer 2

stakeholders

Question 3

accounting concept where financial statements contain all information necessary to understand a business’s financial condition

Answer 3

Adequate Disclosure

Question 4

Accounting concept where financial statements are prepared at the end of each monthly fiscal period

Answer 4

Accounting Period Cycle

Question 5

accounting concept where when financial statements are prepared with the expectation a business will remain in operation indefinitely

Answer 5

Going Concern

Question 6

accounting concept where revenue earned and the expenses incurred are reported in the same fiscal period

Answer 6

Matching Expenses with Revenue