Match each of these numbered descriptions with the term it best describes. Indicate your answer by writing the letter for the correct principle in the blank space next to each description.
a. Cost principle
b. Business entity principle
c. Revenue recognition principle
d. Going concern principle
1. Requires every business to be accounted for separately from its owner or owners.
2. Requires financial statement information to be based on costs incurred in transactions.
3. Requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold.
4. Requires revenue to be recorded only when the earnings process is complete.