6. Which of these basic elements of financial statements arises from peripheral or incidental transactions? A. Liabilities B. Expenses C. Assets D. Gains 7. What accounting concept justifies the usage of depreciation and amortization policies? A. Fair value principle B. Full disclosure principle C. Monetary unit assumption D. Going concern assumption 8. Valuing assets at liquidation values rather than cost is inconsistent with the A. materiality constraint. B. expense recognition principle. C. historical cost principle. D. periodicity assumption. 9. Which assumption or principle requires that all information significant enough to affect decisions of reasonably informed users should be reported in the financial statements? A. Matching B. Going concern. C. Historical cost. D. Full disclosure. 10. Expensing the cost of a wastebasket with an estimated useful life of 10 years when purchased is an example of the application of the A. historical cost principle. B. consistency characteristic. C. materiality ingredient. D. expense recognition principle