Matching Questions 1.Match the descriptions listed in letters a through e below with the proper assumption numbered from 1 through 4 below. Descriptions The economic life of an entity...

Descriptions

1. 
   The economic life of an entity can be divided into time periods.
   

1. 
   The financial statements should contain transactions related to only the business and not the individual owners.
   

1. 
   Purchasing power of money is constant over time.
   

1. 
   The dollar value attached to an item on a company’s balance sheet is determined by the market in which the company operates.
   

1. 
   Life of the entity is indefinite.
   

Financial Statement Valuations

a.Residual value

e.Net realizable value

b.Face value

f.Original cost less accumulated depreciation

c.Original cost

g.Present value

d.Fair market value

h.Estimated sales price