Exercise 1-7 Identifying accounting principles and assumptions LO C4 Match each of the numbered descriptions with the principle or assumption it best reflects. Principal Assumption Description 1. A company reports details behind financial statements that would impact usor decisions 2. Financial statements reflect the assumption that the business continues operating 3. Acompany records the expenses incurred to generate the revenues reported 4. Concepts, assumptions, and guidelines for preparing financial statements 5. Each business is accounted for separately from its owner or owners. 6. Revenue is recorded when products and services are delivered 7. Detailed rules used in reporting events and transactions 8. Information is based on actual costs incurred in transactions Business entity assumption Expense recognition (matching) principle Full disclosure principle General accounting principle