match the accounting principle with the accurate definition
1. requires that each economic transaction be based on the actual original cost.
2. requires that revenues be recorded when earned and expenses be recorded when incurred, which is not necessarily when cash is received (in the case of revenues) or paid (in the case of expenses)
3. requires a business to apply proper accounting only for items that would affect decisions made by users.
4. requires that accounting information communicate sufficient information to allow users to make knowledgeable decisions
5. requires that financial information be communicated in stable units of money.
6. requires that each economic entity maintain separate records.
7. requires that financial transactions be reported in the period in which they occurred/were realized.
8. requires that a business use the same accounting policies and procedures from period to period.
9. assumes that a business will continue for the foreseeable future
dropdown consistency
dropdown going concern
dropdown recognition
dropdown full disclosure
dropdown monetary unit
dropdown business entity
dropdown matching
dropdown materiality
dropdown cost

Question

Accepted Answer

# Brief Explanations:
1. Cost principle: Requires each economic transaction to be based on the actual original cost. So 1 matches with Cost.
2. Accrual (Recognition related to revenue and expense timing, but the option here is Recognition? Wait, the recognition principle (accrual basis) requires revenues be recorded when earned and expenses when incurred. So 2 matches with Recognition? Wait, no, the matching and recognition: Wait, the correct matches are:
- Cost: 1 (original cost)
- Recognition (accrual): 2 (revenues when earned, expenses when incurred)
- Materiality: 3 (affect decision - making items)
- Full disclosure: 4 (sufficient info for decisions)
- Monetary unit: 5 (stable money units)
- Business entity: 6 (separate records for each entity)
- Matching: 7? Wait no, 7 says "reported in the period in which they occurred/were realized" – that's recognition? Wait, no, let's re - check:
- Consistency: 8 (same policies over periods)
- Going concern: 9 (business continues)
- Recognition: 2 (revenues earned, expenses incurred)
- Full disclosure: 4 (sufficient info)
- Monetary unit: 5 (stable money)
- Business entity: 6 (separate records)
- Matching: Wait, 7: "reported in the period in which they occurred/were realized" – maybe I messed up. Let's list all:
1. Cost: Each transaction at original cost. So 1 - Cost.
2. Recognition (Accrual): Revenues when earned, expenses when incurred. So 2 - Recognition.
3. Materiality: Only items affecting decisions. So 3 - Materiality.
4. Full disclosure: Sufficient info for decisions. So 4 - Full disclosure.
5. Monetary unit: Financial info in stable money units. So 5 - Monetary unit.
6. Business entity: Each economic entity has separate records. So 6 - Business entity.
7. Matching? No, 7: "reported in the period in which they occurred/were realized" – maybe Recognition? Wait, no, the matching principle is about matching revenues and expenses. Wait, the 7th definition: "Requires that financial transactions be reported in the period in which they occurred/were realized" – that's the recognition (accrual) principle? But 2 is also about recognition. Wait, maybe the 7th is about the period of occurrence, which is part of the recognition (accrual) or matching? No, let's check standard accounting principles:
- Consistency: 8 (same accounting policies from period to period)
- Going concern: 9 (business will continue)
- Cost: 1
- Recognition (accrual): 2
- Materiality: 3
- Full disclosure: 4
- Monetary unit: 5
- Business entity: 6
- Matching: Wait, 7: "reported in the period in which they occurred/were realized" – maybe that's the matching principle? No, matching is about matching revenues and expenses. Wait, perhaps I made a mistake. Let's do it step by step:
1. Cost: 1
2. Recognition: 2
3. Materiality: 3
4. Full disclosure: 4
5. Monetary unit: 5
6. Business entity: 6
7. Let's see 7: "financial transactions be reported in the period in which they occurred/were realized" – this is the time - period principle? But the options don't have that. Wait, the given options are Consistency, Going concern, Recognition, Full disclosure, Monetary unit, Business entity, Matching, Materiality, Cost.
So:
- Consistency: 8 (same policies)
- Going concern: 9 (business continues)
- Recognition: 2 (revenues earned, expenses incurred)
- Full disclosure: 4 (sufficient info)
- Monetary unit: 5 (stable money)
- Business entity: 6 (separate records)
- Matching: Wait, 7: "reported in the period in which they occurred/were realized" – maybe this is the matching principle? No, matching is about matching revenues and expenses. Alternatively, maybe the 7th is about the recognition of transactions in the period they occur, so Recognition? But 2 is already Recognition. I think I made a mistake earlier. Let's correct:
- 1. Cost: 1
- 2. Recognition: 2
- 3. Materiality: 3
- 4. Full disclosure: 4
- 5. Monetary unit: 5
- 6. Business entity: 6
- 7. Matching? No, 7: "reported in the period in which they occurred/were realized" – this is the principle of recognizing transactions in the period they happen, which is part of the recognition (accrual) principle. But since 2 is already Recognition, maybe the 7th is Matching? No, matching is about matching revenues and expenses. Wait, the 7th definition: "Requires that financial transactions be reported in the period in which they occurred/were realized" – this is the time - period assumption, but in the given options, maybe it's Recognition. Alternatively, perhaps the 7th is Matching. I think I need to proceed with the correct standard matches:
- Cost: 1
- Recognition (Accrual): 2
- Materiality: 3
- Full disclosure: 4
- Monetary unit: 5
- Business entity: 6
- Matching: Wait, no, the matching principle is "Expenses should be matched with the revenues they help to generate". The 7th definition is about reporting transactions in the period they occurred, which is the recognition (accrual) principle. But since 2 is already Recognition, maybe the 7th is Matching. I'm getting confused. Let's list all:
1. Cost - 1
2. Recognition - 2
3. Materiality - 3
4. Full disclosure - 4
5. Monetary unit - 5
6. Business entity - 6
7. Let's say Matching - 7? No, 7's definition is about reporting in the period of occurrence, which is recognition. Maybe the question has a different labeling. Anyway, the correct matches are:
- Consistency: 8 (same policies over periods)
- Going concern: 9 (business continues)
- Recognition: 2 (revenues earned, expenses incurred)
- Full disclosure: 4 (sufficient info)
- Monetary unit: 5 (stable money)
- Business entity: 6 (separate records)
- Matching: Wait, 7: "reported in the period in which they occurred/were realized" – maybe that's Matching? No, I think I should go with the standard:
1. Cost: 1
2. Recognition: 2
3. Materiality: 3
4. Full disclosure: 4
5. Monetary unit: 5
6. Business entity: 6
7. Let's assume 7 is Matching (but I'm not sure, maybe the question has a typo). But for the purpose of this, we'll match as follows:
1. Cost
2. Recognition
3. Materiality
4. Full disclosure
5. Monetary unit
6. Business entity
7. Let's say Matching (but maybe it's Recognition again, but since 2 is already Recognition, perhaps 7 is Matching)
8. Consistency
9. Going concern

# Answer:
1. Cost
2. Recognition
3. Materiality
4. Full disclosure
5. Monetary unit
6. Business entity
7. Matching (Note: There might be some confusion in the question's definitions, but this is the best match based on standard accounting principles)
8. Consistency
9. Going concern

(To match the dropdowns:
- Consistency: 8
- Going concern: 9
- Recognition: 2
- Full disclosure: 4
- Monetary unit: 5
- Business entity: 6
- Matching: 7
- Materiality: 3
- Cost: 1)

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