Identify the accounting concept that describes each situation below. Do not use any concept more than once.
| (a) | | Is the rationale for why plant assets are not reported at liquidation value. (Do not use the historical cost principle.) | | ![\"\"](\"//edugen.wileyplus.com/edugen/art2/common/pixel.gif\"/) Expense recognition principleMaterialityMonetary unit assumptionFull disclosure principleGoing concern assumptionPeriodicity assumptionHistorical cost principleRevenue recognition principleEconomic entity assumptionCost constraint
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| (b) | | Indicates that personal and business recordkeeping should be separately maintained. | | Historical cost principlePeriodicity assumptionMaterialityRevenue recognition principleFull disclosure principleGoing concern assumptionCost constraintEconomic entity assumptionExpense recognition principleMonetary unit assumption |
| (c) | | Ensures that all relevant financial information is reported. | | Revenue recognition principleMonetary unit assumptionFull disclosure principleEconomic entity assumptionGoing concern assumptionCost constraintExpense recognition principlePeriodicity assumptionHistorical cost principleMateriality |
| (d) | | Assumes that the dollar is the “measuring stick” used to report on financial performance. | | Revenue recognition principleFull disclosure principleMaterialityGoing concern assumptionMonetary unit assumptionPeriodicity assumptionCost constraintEconomic entity assumptionExpense recognition principleHistorical cost principle |
| (e) | | Requires that accounting standards be followed for all items of significant size. | | Expense recognition principleMonetary unit assumptionPeriodicity assumptionHistorical cost principleMaterialityRevenue recognition principleCost constraintEconomic entity assumptionFull disclosure principleGoing concern assumption |
| (f) | | Separates financial information into time periods for reporting purposes. | | Historical cost principleMonetary unit assumptionPeriodicity assumptionFull disclosure principleMaterialityGoing concern assumptionRevenue recognition principleCost constraintExpense recognition principleEconomic entity assumption |
| (g) | | Requires recognition of expenses in the same period as related revenues. | | Economic entity assumptionFull disclosure principleRevenue recognition principleMaterialityCost constraintExpense recognition principleGoing concern assumptionMonetary unit assumptionPeriodicity assumptionHistorical cost principle |
| (h) | | Indicates that fair value changes subsequent to purchase are not recorded in the accounts. | | Going concern assumptionMonetary unit assumptionMaterialityCost constraintRevenue recognition principlePeriodicity assumptionHistorical cost principleExpense recognition principleFull disclosure principleEconomic entity assumption |
a) Going concern assumption b) Economic entity assumption c) Full disclosure principle d) Monetary unit assumption e) Materiality f) Time period assumption g) Matching principle h) Cost principle
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