(Assumptions, Principles, and Constraint) Presented below are the assumptions, principles, and constraint used in this chapter. 1. Economic entity assumption 2. Going concern assumption 3. Monetary unit assumption 4. Periodicity assumption (time period) 5. Measurement principle (historical cost) 6. Measurement principle (fair value) 7. Expense recognition principle 8. Full disclosure principle 9. Cost constraint 10. Revenue recognition principle Instructions Identify by number the accounting assumption, principle, or constraint that describes each situation below. Do not use a number more than once. a. Allocates expenses to revenues in the proper period. b. Indicates that fair value changes subsequent to purchase are not recorded in the accounts. (Do not use revenue recognition principle.) c. Ensures that all relevant financial information is reported. d. Rationale why plant assets are not reported at liquidation value. (Do not use historical cost principle.) e. Indicates that personal and business record keeping should be separately maintained. f. Separates financial information into time periods for reporting purposes. g. Assumes that the dollar is the "measuring stick" used to report on financial performance. h. Revenue is recorded when earned. i. The price that would be used to sell an asset between market participants at the measurement date. j. Companies must weigh the costs of providing the information against the benefits that can be derived from using it. ALT ENLLE10 (Mac)