Match each of the numbered descriptions with the principle it best reflects. Indicate your answer by writing the letter for the appropriate principle in the blank space next to each description.

A. General accounting principle E. Specific accounting principle B. Cost principle F. Objectivity principle C. Business entity principle G. Going-concern principle D. Revenue recognition principle 1 Usually created by a pronouncement from an authoritative body.

2 Financial statements reflect the assumption that the business continues operating.

3 Derived from long-used and generally accepted accounting practices.

4 Every business is accounted for separately from its owner or owners.

5 Revenue is recorded only when the earnings process is complete.

6 Information is based on actual costs incurred in transactions.

7 Financial statement data are supported by evidence other than someone’s opinion or belief.