Match the situation with the best term to explain why things are done this way.

o Siuations and Accounting Terms . Every year a business uses the same account names so it can evaluate results between years. . When we prepare a nancial statement, we show all assets at the price we paid for them. . A business should not spend $1,000 on counting and recounting $500 worth of inventory. . If we assume the business is going to go bankrupt and, as a result, we record a truck on the nancial statement at the price we could get for it if we tried to sell it quickly, we are following this accounting assumption. . We try to include information in the accounting records such that nancial statements provide enough information for readers to make an investment decision. . A car dealership will report prots for the parts department separate from the service department so that senior management can see how well each part of its business is doing. Print Done f. Cost principle Going concern assumption Relevance characteristic Costbenet constraint Economic entity assumption Comparability characteristic