Main Question Set 3 3 Match the correct description to each of the accounting principles. Review Later Conservatism Principle Historical Cost Principle Objectivity Principle Economic Entity Principle A. It states that assets and liabilities are recorded on the financial statements at the cost at which they were acquired or assumed. B. It states that transactions carried out by a business are separated from those conducted by its owner. C. It states that the expenses of a business should be recorded in the periods in which the corresponding revenues are earned. D. It states that financial statements must be free from bias and based on verifiable evidence. E. It provides guidance on how to record transactions when there is uncertainty. Matching Principle