P7-3B Presented below are the assumptions, principles, and constraints used in this chapter.

1. Economic entity assumption 2. Going concern assumption 3. Monetary unit assumption 4. Time period assumption 5. Full disclosure principle 6. Revenue recognition principle 7. Matching principle 8. Cost principle 9. Materiality 10.Conservatism Identify by number the accounting assumption, principle, or constraint that matches each de¬

scription below. Do not use a number more than once.

(a) Repair tools are expensed when purchased. (Do not use conservatism.)

(b) Allocates expenses to revenues in proper period.

(c) Assumes that the dollar is the measuring stick used to report financial information.

(d) Separates financial information into time periods for reporting purposes.

(e) Market value changes subsequent to purchase are not recorded in the accounts. (Do not use revenue recognition principle.)

(f) Indicates that personal and business record keeping should be separately maintained.

(g) Ensures that all relevant financial information is reported.

(h) Lower of cost or market is used to value inventories.