Identify, by letter, the assumption or characteristic of information which best represents the situations given.

A. Accounting entity assumption 

B. Accrual basis assumption

C. Going concern assumption

D. Period assumption

E. Relevance  

F. Faithful representation  

G. Materiality  

H. Comparability 

______ 1. The reporting of accounting information should be free from personal bias.

______ 2. In a single proprietorship, the owner’s house and car are not recorded in the records of the business.

______ 3. The cost of stationery is not shown separately in the income statement.

______ 4. Services provided by a business entity are recorded before the receipt of cash.

______ 5. Machinery held by the business under a long-term lease arrangement is recorded by the business as its own asset.

______ 6. An expense is recorded in the year in which an asset or benefit is consumed in the process of carrying on the entity’s business.

______ 7. Assets are not recorded at liquidation prices.

______ 8. Consistent accounting policies and methods are used in the preparation of financial statements from one year to another.