3.3 GAAP PRINCIPLES 3.3.1 What does GAAP stand for? Give ONE reason for using GAAP? 3.3.2 Indicate which of the following GAAP principles would be applied in each case: materiality historical cost going concern prudence business entity matching (a) Items of significance must be reported. (b) Financial information is always reported conservatively. (c) Income and expenses must be recorded in the correct financial period. (d) The financial statements are completed under the assumption that the business will continue operating in the foreseeable future. (e) All assets must be reported at its original cost price. (3)