4-April 19-25-Chapter 5 -Accounting theory Read the chapter Answer the following question: 1. Name the assumptions underlying generally accepted accounting principle Com high inflation. 2. Why does the accountant use the business entity concept? 3. When is the going-concern assumption NOT to be used? 4. What does it mean to say that accountants record substance rather than form? 5. What two requirements generally must be met before recognizing revenue in a period? 6. Define expense. What principles guide the recognition of expense? 7. How does an expense differ from a loss? 8. What is the full disclosure principle? 9. What role does cost-benefit play in financial reporting? s (GAAP) ment on the validity of the stable unit of measurement assumption during periods of 10. What is meant by the accounting term conservatism? How does it affect the amounts reported in the financial statements? 11. Does materiality relate only to the relative size of dollar amounts