Presented below are the assumptions and principles discussed in this chapter.

Instructions Identify by number the accounting assumption or principle that is described below. Do not use a number more than once.
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(a) Is the rationale for why plant assets are not reported at liquidation value.
(Note: Do not use the cost principle.)
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(b) Indicates that personal and business record-keeping should be separately maintained.
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(c) Assumes that the dollar is the “measuring stick” used to report on financial performance.
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(d) Separates financial information into time periods for reporting purposes.
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(e) Measurement basis used when a reliable estimate of fair value is not available.
——— (f ) Dictates that companies should disclose all circumstances and events that make a difference to financial statement users.

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1. Full disclosure principle. 2. Going concern assumption. 3. Monetary unit assumption. 4. Periodicity assumption. 5. Cost principle. 6. Economic entity assumption.