Cromwell Corporation has the following trial balance account balances, given in no certain order, as of December 31, 2018. Using the information provided, prepare Cromwell's annual financial statements (omit the Statement of Cash Flows). Preoare an income statement. Prepare a statement of retained earnings. Prepare a balance sheet. Cromwell Corporation has the following trial balance account balances, given in no certain order, as of December 31, 2018. Using the information provided, prepare Cromwell's annual financial statements (omit the Statement of Cash Flows). Preoare an income statement. Prepare a statement of retained earnings. Prepare a balance sheet. Definition - If uncertainty in a potential financial estimate, a company should err on the side of caution and report the most conservative amount - Also known as the historical cost principle, states that everything the company owns or controls (assets) must be recorded at their value at the date of acquisition - (Also referred to as the matching principle) matches expenses with associated revenues in the period in which the revenues were generated Business must report any business activities that could affect what is reported on the financiad statements - System of using a monetary unit by which to value the transaction, such as the US dollar Cost principle Conservatism Expense recognition principle Full disclosure principle Monetary measurement concept Revenue recognition principle Separate entity concept Match the correct term with its definition. \begin{tabular}{ll} Term & Definition \\ \hline If uncertainty in a potential financial \end{tabular} estimate, a company should err on the side of caution and report the most conservative amount Also known as the historical cost principle, states that everything the company owns or controls (assets) must be recorded at their value at the date of acquisition iil. (Also referred to as the matching principle) matches expenses with associated revenues in the period in which the revenues were generated Business must report any business activities that could affect what is reported on the financial statements System of using a monetary unit by which to value the transaction, such as the US dollar Period of time in which you performed the service or gave the customer the product is the period in which revenue is recognized Business may only report activities on financial statements that are specifically related to company operations, not those activities that affect the owner personally