Determine the statement is TRUE or FALSE

1) A constraint for financial reporting is the cost in preparation and communication financial information

2) Predictive and confirmatory values are not directly related

3) The expense recognition principle states that debits must equal credits in each transaction

4) The conceptual framework underlying U.S. GAAP is similar to that underlying IFRS.

5) Classifying liabilities into current and long term is only possible due to historical cost principle.