Match the accounting terminology to the definitions. 7. Cost principle a. oversees the creation and governance of accounting standards in the United States 8. GAAP b. requires an organization to be a separate economic unit 9. Faithful representation c. oversees U.S. financial markets 10. SEC d. states that acquired assets and services should be recorded at their actual cost 11. FASB e. creates International Financial Reporting Standards 12. Monetary unit assumption f. the main U.S. accounting rule book 13. Economic entity assumption g. assumes that an entity will remain in operation for the foreseeable future 14. Going concern assumption h. assumes that items on the financial statements are recorded in a monetary unit 15. IASB i. requires information to be complete, neutral, and free from material error

As per the cost principle, assets or services purchased should be recorded at the actual cost of purchase.

GAAP stands for “Generally Accepted Accounting Principles” which provides the guidelines for accounting information. It is the main book of accounting rules in the U.S.

As per faithful representation principle, information presented in the statement should be complete, neutral, and should be error free.

SEC stands for “Securities and Exchange Commissions”. It is the agency formulated by the U.S. government, which oversees the financial markets of the U.S.

FASB stands for “Financial Accounting Standards Board”. It is the organization which is privately funded and responsible for creation and governance of the standards of accounting.

As per monetary unit assumption, items valued in terms of monetary terms only should be recorded in the financial statements.

As per economic entity assumption, businesses have separate legal entity as compared to the actual owner.

As per going concern assumption, business will continue to be in operation for the foreseeable future.

IASB stands for “International Accounting Standards Board”. It is responsible for publishing IFRS.