Complete the definitions below by filling in the selecting the the correct choice from the drop-down list - Expenses should be matched to the revenue, which they helped generate, in the period in which the revenue is reported. This is known as the [Select] square A fundamental quality of accounting information that refers to the ability of such information to influence users decision-making. This means that information has predictive value, confirmatory value or both. This refers to square -The accounting convention which states that the business and its owner(s) are treated as quite separate and distinct in accounting, is known as the square - An enhancing quality of accounting information that enables such information to be understood by those for whom the information is primarily compiled. This means the information is presented clearly and concisely. This refers to square - Proht is the excess of revenue over expenses not the excess of cash receipts over cash payments. This is known as the [Select] square

Question

Complete the definitions below by filling in the selecting the the correct choice from the drop-down list - Expenses should be matched to the revenue, which they helped generate, in the period in which the revenue is reported. This is known as the [Select] square A fundamental quality of accounting information that refers to the ability of such information to influence users decision-making. This means that information has predictive value, confirmatory value or both. This refers to square -The accounting convention which states that the business and its owner(s) are treated as quite separate and distinct in accounting, is known as the square - An enhancing quality of accounting information that enables such information to be understood by those for whom the information is primarily compiled. This means the information is presented clearly and concisely. This refers to square - Proht is the excess of revenue over expenses not the excess of cash receipts over cash payments. This is known as the [Select] square

Answer 1

1. Matching Principle2. Relevance3. Business Entity Concept4. Understandability5. Accrual Accounting

Answer 2

## Step1: The first statement describes matching principles in accounting. Expenses should be recognized in the period in which they relate to the earned revenue. These matching principles ensure that all related costs and incomes are accounted for in the same reporting period.### **The concept referred to in this statement is the "Matching Principle".**## Step2: The second statement refers to the quality of accounting information influencing a user's decisions. Information that has predictive value or confirmatory value-based on its preciseness, accuracy, and reliability is helpful for users to foresee future outcomes, verify past events or both. ### **The concept being identified here is "Relevance".**## Step3: The third explanation highlights the concept of discipline separation between the business and its owner(s) distinctively. In accounting, the business and its owners are treated as two separate legal entities.### **This principle is called "Business Entity Concept".**## Step4: Fourth, there's talk of a quality that makes accounting information understood easily and rapidly by its users. The accounting data's primary objective is to provide concise but clear information for reports.### **The concept in this explanation refers to the "Understandability".**## Step5: The final principle insists that profit is the difference between revenue and expenses rather than the surplus of cash receipts overtaking payments. Many economic events affecting a company's profit aren't immediately cash-based matters. This ally exercises this concept universally throughout the accounting fraternity.### **This principle is referred to as "Accrual Accounting".**

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