Term to Meaning (ACCA FA)

Exercise and reference answers

Matching pairs

1. Left

   Going concern

   Right

   Entity continues to operate

2. Left

   Accruals

   Right

   Match income to expenses

3. Left

   Prudence

   Right

   Avoid overstating assets

4. Left

   Consistency

   Right

   Same methods each period

5. Left

   Materiality

   Right

   Omission could mislead users

Instructions

Match each concept to its meaning.