Instructions Identify by number the accounting assumption, principle, or constraint that describes each situation
below. Do not use a number more than once,
a. Allocates expenses to revenues in the proper period.
b. Indicates that fair value changes subsequent to purchase are not recorded in the accounts. (Do not
use revenue recognition principle.)
c. Ensures that all relevant financial information is reported.
d. Rationale why plant assets are not reported at liquidation value. (Do not use historical cost principle.)
e. Indicates that personal and business record keeping should be separately maintained.
f. Separates financial information into time periods for reporting purposes.
Assumes that the dollar is the "measuring stick" used to report on financial performance.