1. Economic entity assumption
2. Going concern assumption
3. Monetary unit assumption
4. Periodicity assumption
5. Historical cost principle
6. Fair value principle
7. Expense recognition principle
8. Full disclosure principle
9. Cost constraint
10. Industry practices
Check by number the accounting assumption, principle, or constraint that explains each situation below. Do not use a number more than once.
(a) Allocates expenses to revenues in the proper period.
(b) Shows that fair value changes following to purchase are not recorded in the accounts.
(c) Ensures that all relevant financial information is reported.
(d) Rationale why plant assets are not reported at liquidation value.
(e) Shows that personal and business record keeping should be individually maintained.
(f) Separates financial information into time periods for reporting purposes.
(g) Permits the use of fair value valuation in certain industries.
(h) Consider that the dollar is the "measuring stick" used to report on financial performance.