ACCOUNTING ASSUMPTIONS Four statements are given below.

a. The accounting records of a company are kept separate from its owners.

b. The accountant assigns revenues and expenses to specific years before preparing the financial statements.

c. A company values its inventory reported in the financial statements in terms of dollars instead of units.

d. Property, plant, and equipment is recorded at cost (less any accumulated depreciation) instead of liquidation value.

Required:

Give the accounting assumption that is most applicable to each of the following statements.

Cornerstone Exercise