Accounting Term Situation 1. Every year a business uses the same account names so it can evaluate results between years. 2. When we prepare a financial statement, we show all assets at the price we paid for them. 3. A business should not spend $1,000 on counting and recounting $500 worth of inventory. 4. If we assume the business is going to go bankrupt and, as a result, we record a truck on the financial statement at the price we could get for it if we tried to sell it quickly, we are following this accounting assumption. 5. We try to include information in the accounting records such that financial statements provide enough information for readers to make an investment decision. 6. A car dealership will report profits for the parts department separate from the service department so that senior management can see how well each part of its business is doing