the appropriate line. Pick one concept only for each description.

A. Monetary unit B. Consistency

C. Full disclosure D. Historical cost E. Business entity F. Matching

G. Materiality

H. Going concern

J. Revenue recognition K. Time interval

1._____ Revenue should be recognized when it is earned, which is usually at the point of sale.

2._____ There must be complete and understandable reporting on financial statements.

3._____ If an item will not affect any business decisions, it need not be separately reported in the financial statement.

4._____ Measurement of the standing and progress of entities should be made at regular intervals rather than at the end of the business life.

5._____ If revenue is deferred to a future period, the related costs of generating that revenue should be deferred to the same future period, provided the resultant cost deferral meets the

definition of an asset.