1) Which principle/assumption requires that all information that could affect decisions should be reported? a) Historical cost principle. b) Full-disclosure principle. c) Going concern assumption. d) Economic entity assumption. e) Monetary unit assumption. 1 2) Which of the following term refers to concerns about the relative size of an item and its effect on decisions? a) Consistency. b) Conservatism c) Materiality. I d) Reliability. e) Relevance. 3) Which adjusting entry would you consider for adjusting prepaid expenses that were originally recorded as an expense? a) Debit: Prepaid expenses: Credit: Cash. b) Debit: Prepaid expenses; Credit: Expenses. c) Debit: Expenses; Credit: Prepaid expenses. d) Debit: Expenses; Credit: Cash e) None of the above