1.

A principle which states that all properties and services acquired by the business must be
recorded at its original acquisition

Answer: Historical Cost

2. A principle which states that all material facts that will significantly affect the financial
statements must be indicated

Answer: Adequate Disclosure

3. A principle which recognizes that financial reporting is only be concerned with information
that is significant enough for a particular user to affect its decision

Answer: Materiality

4. A principle which requires the entity to use uniform accounting approaches/method/policies

from period to period to allow comparability of financial reports over time within a single
activity

Answer: Consistency Principle

5. It shows the financial condition/position of a business as of a given period. It consists of the

assets, liabilities, and capital

Answer: Statement of Financial Position or Balance Sheet

6. This principle involves the review of data prepared by employees

Answer: Independent Internal Verification

7. A dishonest act by an employee that results in personal benefit to the employee at a cost to
the employer

Answer: Fraud
8. Consists of all the related method and measures adopted within an organization to safeguard
assets, enhance the reliability of accounting records, increase efficiency of operations, and
ensure compliance with laws and regulations

Answer: Internal Control

9. The work of one employee should, without a duplication of effort, provide a reliable basis for
evaluating the work of another employee

Answer: Segregation of Duties

10. Provides evidence that transactions and events have occurred

Answer: Documentation Procedures