Reference no: EM132490387

Question 1: Identify the accounting concept that describes each situation below. Do not use any concept more than once. The Accounting concepts are: Materiality, Going concern assumption, Full disclosure principle, Periodicity assumption, Monetary unit assumption, Economic entity assumption, Revenue recognition principle, Expense recognition principle, Cost constraint, Historical cost principle

Point a. Is the rationale for why plant assets are not reported at liquidation value. (Do not use the historical cost principle.)

Point b. Indicates that personal and business record keeping should be separately maintained.

Point c. Ensures that all relevant financial information is reported.

Point d. Assumes that the dollar is the "measuring stick" used to report on financial performance.

Point e. Requires that accounting standards be followed for all items of significant size.

Point f. Separates financial information into time periods for reporting purposes.

Point g. Requires recognition of expenses in the same period as related revenues.

Point h. Indicates that fair value changes subsequent to purchase are not recorded in the accounts.