Exercise 1-14 (Static) Basic assumptions and principles (L01-7, 1-8, 1-9] Identify the accounting concept that relates to each statement or phrase below. Statement Accounting Concepts 1. Inflation causes a violation of this assumption. 2. Information that could affect decision making should be reported. 3. Recognizing expenses in the period they were incurred to produce revenue. 4. The basis for measurement of many assets and liabilities. 5. Relates to the qualitative characteristic of timeliness. 6. All economic events can be identified with a particular entity 7. The benefits of providing accounting information should exceed the cost of doing so. 8. A consequence is that GAAP need not be followed in all situations. 9. Not a qualitative characteristic, but a practical justification for some accounting choices. 10. Assumes the entity will continue indefinitely