Match the following situations with the accounting principle that best applies. In some cases, more than one principle may apply.

Conservatism Materiality Consistency Monetary unit Cost Objectivity Full disclosure Realization Going concern Time period Matching a A hotel corporation is preparing its end of year financial statements.

Management has informed the accountant that in six weeks it will begin to close 12 of its properties. The accountant will provide information related to these future actions on the current end of year financial statements because of the ______________ principle and the ______________ principle.

b A caterer purchases a delivery van for €7,500 from another caterer having problems. Based on the ______________ principle, the delivery van purchase is recorded at €7,500, even though the caterer could sell it again for

€10,000.

c A hotel receives advance payments of €2,500 from a conference organizer.

This is not a sale due to the ______________ principle.

d A restaurant has traditionally used the straight line method to depreciate all its heavy duty kitchen equipment. This year it decides to start using the double declining balance depreciation method on the same equipment.

This change must be announced in the financial statements due to the ______________ principle.