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Financial Analysis Chapter 2

Across
Assumption that the business entities will operate indefinitely unless there is strong evidence to the contrary
A method of accounting under which revenues are recorded when cash is received, and expenses are recognized when cash is paid
Characteristic that means the same accounting methods and choices should be used from one time period to another
The assumption that specifies the time period that business firms use to report financial information
all expenses must be matched in the same accounting period as the revenues they helped to earn. In practice, matching is a combination of accrual accounting and the revenue recognition principle.
The significance of the dollar amount of an item that would make a difference in decision making
Down
Characteristic that allows users to compare financial information of an entity to other entities as well as comparing financial information of that entity to itself from one time period to another
A method of earnings determination under which revenues are recognized in the accounting period when earned, regardless of when cash is received, and expenses are recognized in the period incurred, regardless of when cash is paid. .
The principle that requires that 4 conditions be met in order to record revenue
The unit of measurement that is assumed when preparing financial statements