Accounting Principles (Word Scramble)

1. General guidelines in accounting.

2. The __________ unit assumption means transactions of U.S. companies are reported in U.S. dollars.

3. Adjusting entries help to achieve the ____________ principle.

4. The cost principle is often described as the __________ cost principle.

5. __________ practices allows the format of a public utility's balance sheet to be different from that of a manufacturer.

6. The concept of _________________ allows for the violation of an accounting principle when the amounts are insignificant.

7. The __________ entity assumption results in business transactions being kept separate from a sole proprietor's personal transactions.

8. Full __________ is achieved through the notes to the financial statements.

9. In cases of uncertainty, less profit is reported under this concept.

10. This assumption justifies quarterly financial statements.

11. Defined as the cash or cash equivalent amount at the time of a transaction.

12. Accrual accounting is related to this principle.

13. Results in the reporting of contingent losses, but not contingent gains.

14. Permits the immediate expensing of insignificant assets.

15. FASB is the acronym for _____________ Accounting Standards Board.

16. The __________ concern assumption is that an enterprise will continue on long enough to carry out its objectives and commitments.

17. Communicating the significant accounting policies in the first note to the financial statements is related to the full ______________ principle.

18. The U.S. government agency with authority over the reporting requirements of corporations whose stock is publicly traded in the U.S. is the Securities and ______________ Commission.

19. Under the __________-basis of accounting, revenues are reported on the income statement in the period in which they are earned.

20. Part of the _______________ unit assumption is that the U.S. dollar retains its purchasing power over time.