Match the accounting assumption with its appropriate statement.

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The following is a list of accounting assumptions and principles that have had an important impact on the development of generally accepted accounting principles and statements describing certain accounting practices. A. Reporting entity B. Going concern C. Period of time D. Historical cost E. Monetary unit F. Recognition G. Accrual accounting H. Revenue recognition I. Expense recognition J. Conservatism Required: Select the accounting assumption or principle that justifies each accounting practice and select the appropriate letter on each statement. 1. To provide timely information, companies prepare and report financial statements at the end of each year. 2. Appropriate recognition when a company consumes economic resources in conducting business operations. 3. Accounting measurements for U.S. companies are reported in dollars. 4. The financial statements represent the business, rather than its owners. 5. In the absence of evidence to the contrary, the business can be reasonably…

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Chapter 2, Problem 2E

To determine

Match the accounting assumption with its appropriate statement.

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