quizzunit3test

1.

Accounting is a primary means of communicating in businesses, governments and................

(charity) and educational institutions - and among individuals.

 

 

Revenue is earned when all necessary................. (require) are met entitling the company to the benefits represented by the revenue (e.g. services performed).

 

 

Governmental organizations must follow accounting .................(procedure) that are the same as their counterparts, and non-governmental organizations must do the same.

 

4.

The principles, procedures and standards that make up the generally .................

(accept)accounting principles were chosen with the purpose of ensuring that organizations lean in the direction of openness when deciding how to provide information to observers.

This kind of .................

(transparent) is especially important in the case of public entities, such

 

as governments or publicly traded companies.

 

The standards make it more difficult for organizations to misdirect observers and to fool them with data that does not have .................(sufficiency) relevancy.

 

An absence of accounting standards would make the work of

................. (invest), regulators,taxpayers, reporters and others more difficult and more risky.

 

8.

In the United States, the dollar is the unit of measurement for all transactions. No ................

(adjust) is made for changes in the purchasing power of the dollar.

Matching revenue and expense is necessary if the .................

(result) of the firm’s operations are

 

to reflect accurately its economic activities during the period.

 

. Revenue is recognized at the time of sale, which is when title to the product being ................

 

(sell) passes from the seller to the buyer or when the services involved in the transaction have been

 

performed.