Identify Accounting Assumptions, Principles, and Constraints
Identify by number the accounting assumption, principle, or constraint that describes each situation below. Do not use a number more than once.
1. Economic entity assumption
2. Matching principle
3. Monetary Unit assumption
4. Time period assumption
5. Cost principle
7. Full disclosure principle
8. Going concern assumption
9. Revenue recognition principle
A)Is the reationale for why plant assets are not reported at liquidation value. (Do not use the cost principle)
B) Indicates that personal and business record-keeping should be separately maintained.
C) Ensures that all relevant financial information is reported.
D) Assumes that the dollar is the "measuring stick" used to report on financial performance.
E). Requires that accounting standards be followed for all significant items.
F) Separates financial information into time periods for reporting purposes.
G) Requires recognition of expenses in the same period as related revenues.
H) Indicates that market value changes subsequent to purchase are not recorded in the accounts.
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