Presented below are the assumptions and principles discussed in this chapter. LO8 1. Full disclosure principle 4. Periodicity assumption 2. Going concern assumption 5. Historical cost principle 3. Monetary unit assumption 6. Economic entity assumption 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 historical cost principle.)

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(b) Indicates that personal and business recordkeeping should be separately maintained.
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(c) Assumes that the dollar is the “measuring stick” used to report on fi nancial performance.
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(d) Separates fi nancial 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.
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(f) Dictates that companies should disclose all circumstances and events that make a difference to fi nancial statement users.