Question

Drag each label to the correct location on the image.

Match the activities with the relevant accounting principles.

a document backs a
transaction

a practice eliminates the
bias of the accountant

a company maintains the
same accounting practices
across accounting periods

an auditor approves
the authenticity of a
transaction

/ Objectivity

/ Consistency

Answer 1

In the context of accounting principles, 'Objectivity' involves the unbiased and factual backing of transactions, while 'Consistency' ensures uniform accounting practices over time for comparability.

Step-by-step explanation:

The student's question relates to matching certain activities with the relevant accounting principles. Here's how they should be matched:

• 'A document backs a transaction' corresponds to the principle of Objectivity.
• 'A practice eliminates the bias of the accountant' also relates to Objectivity, asserting that accounting records and actions should be free from bias.
• 'A company maintains the same accounting practices across accounting periods' corresponds to Consistency, ensuring that financial statements are comparable across different periods.
• 'An auditor approves the authenticity of a transaction' is associated with Objectivity, emphasizing the unbiased and substantiated verification of financial information.

Objectivity in accounting refers to the unbiased and factual documentation of transactions, whereas Consistency refers to the uniform application of accounting principles over time to enable comparability.