Match the Generally Accepted Accounting Principles (GAAP) term in List A with principles (definitions) in List B

List A                                                      List B

1) Money measurement                             a) each transaction must be recorded twice

2) Historical cost                                       b) maintain the same procedure for similar items

3) Going concern                                       c) keep separate accounts for business

4) Consistency                                           d) record items at purchase price

5) Business entity (legal personality)            e) record items that can be measured in monetary terms

6) Duality (double entry)                             f) assume that the business will continue indefinitely


Check your answers Below

1) E  2) D  3) F  4) B  5) C  6)A

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