EA1. LO 3.1 Type the roman numeral for the definition next to the corresponding term. Solution A. cost principle: B. full disclosure principle: C. separate entity concept: D. monetary measurement concept: E. conservatism: F. revenue recognition principle: G. expense recognition principle: i. if uncertainty exists in a potential financial estimate, a company should err on the side of caution and report the most conservative amount ii. 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 iii. (also referred to as the matching principle) matches expenses with associated revenues in the period in which the revenues were generated iv. business must report any business activities that could affect what is reported on the financial statements v. system of using a monetary unit by which to value the transaction, such as the US dollar vi. period of time in which you performed the service or gave the customer the product is the period in which revenue is recognized vii. business may only report activities on financial statements that are specifically related to company operations, not those activities that affect the owner personally EA13. LO 3.4 Identify whether ongoing transactions posted to the following accounts would normally have only debit entries (Dr), only credit entries (Cr), or both debit and credit entries (both). Solution Accounts Payable Cash Gas and Oil Expense Rent Revenue Supplies Expense Common Stock Type of entry He