EA1. LO 3.1 For each definition below, identify the appropriate principle or concept from the FASB conceptual framework. Principle or Concept Definition if uncertainty in a potential financial estimate, a company should err on the side of caution and report the most conservative amount also known as the historical cost principle, states that everything the company owns or controls (assets) must be recorded at their value at the date of acquisition (also referred to as the matching principle) matches expenses with associated revenues in the period in which the revenues were generated business must report any business activities that could affect what is reported on the financial statements system of using a monetary unit by which to value the transaction, such as the US dollar . period of time in which you performaed the service or gave the customer the product is the period in which revenue is recognized business may only report activities on financial statements that are specifically related to company operations, not those activities that affect the owner personally EA2. LO 3.2 Consider the following accounts, and determine if the account is an Asset, Liability, or Equity. Account Accounts Payable Cash Dividends Notes Payable ACCT B202 Chapter 3 Asset? Liability? or Equity? Principles of Financial Accounting Access for free at openstac.org