Question

Identify the accounting concept that describes each situation below. Do not use any concept more than once.

a.		Is the rationale for why plant assets are not reported at liquidation value. (Do not use the historical cost principle.)		choose the accounting concept Full disclosure principleMonetary unit assumptionHistorical cost principleRevenue recognition principleCost constraintExpense recognition principlePeriodicity assumptionEconomic entity assumptionMaterialityGoing concern assumption
b.		Indicates that personal and business recordkeeping should be separately maintained.		choose the accounting concept Economic entity assumptionGoing concern assumptionExpense recognition principleMonetary unit assumptionPeriodicity assumptionHistorical cost principleMaterialityFull disclosure principleRevenue recognition principleCost constraint
c.		Ensures that all relevant financial information is reported.		choose the accounting concept Cost constraintPeriodicity assumptionExpense recognition principleHistorical cost principleMaterialityFull disclosure principleGoing concern assumptionRevenue recognition principleEconomic entity assumptionMonetary unit assumption
d.		Assumes that the dollar is the “measuring stick” used to report on financial performance.		choose the accounting concept Full disclosure principleGoing concern assumptionPeriodicity assumptionHistorical cost principleMonetary unit assumptionMaterialityRevenue recognition principleCost constraintExpense recognition principleEconomic entity assumption
e.		Requires that accounting standards be followed for all items of significant size.		choose the accounting concept Cost constraintHistorical cost principleGoing concern assumptionMaterialityExpense recognition principleEconomic entity assumptionFull disclosure principleMonetary unit assumptionRevenue recognition principlePeriodicity assumption
f.		Separates financial information into time periods for reporting purposes.		choose the accounting concept Monetary unit assumptionGoing concern assumptionCost constraintPeriodicity assumptionEconomic entity assumptionRevenue recognition principleExpense recognition principleHistorical cost principleMaterialityFull disclosure principle
g.		Requires recognition of expenses in the same period as related revenues.		choose the accounting concept Cost constraintPeriodicity assumptionGoing concern assumptionFull disclosure principleEconomic entity assumptionExpense recognition principleHistorical cost principleMonetary unit assumptionMaterialityRevenue recognition principle
h.		Indicates that fair value changes subsequent to purchase are not recorded in the accounts.		choose the accounting concept Revenue recognition principleHistorical cost principleGoing concern assumptionMaterialityFull disclosure principleCost constraintEconomic entity assumptionExpense recognition principleMonetary unit assumptionPeriodicity assumption

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

a.	Is the rationale for why plant assets are not reported at liquidation value. (Do not use the historical cost principle.)	Going concern assumption
b.	Indicates that personal and business recordkeeping should be separately maintained.	Economic entity assumption
c.	Ensures that all relevant financial information is reported.	Full disclosure principle
d.	Assumes that the dollar is the “measuring stick” used to report on financial performance.	Monetary unit assumption
e.	Requires that accounting standards be followed for all items of significant size.	Materiality
f.	Separates financial information into time periods for reporting purposes.	Periodicity assumption
g.	Requires recognition of expenses in the same period as related revenues.	Expense recognition principle
h.	Indicates that fair value changes subsequent to purchase are not recorded in the accounts.	Cost principle