Bokkeeping Rules

Matching exercise

Match the items on the right to the items on the left.
Requires every business to be accounted for separately
Requires that assets are recorded at their original cost
Requires that revenues are recorded when actually earned
Requires offsetting the revenues earned with the expenses incurred
Assumes that a business will continue operations indefinitely
Requires transactions and events to be measured in money
Dividing up and reporting results for periods of operation such as months, quart
Recording assets such as land at original cost and ignoring increases in value.
Applying the same accounting methods in each period.
Omitting insignicant information from financial reports.
Following the practices of similar types of businesses.
Applied to inventory or marketable securities.