El-7. Rules- versus Principles-Based Accounting. Review the following statements and indicate if the statement is referring to a principles-based or a rule-based accounting standard. Statement: "An accountant will use a particular accounting Principles-Based or Rules- tandard only if... Based Accounting Standard -..the length of a contract covers substantiely all of the useful a. Princip : Base fe of a plant asset the number of new common shares a firm Issues is eque to b._Rule Base 01% of the previously outstanding shares. B corporation owns over sos of the voting shares of an c. Rule Base fillate company a corporation has the ability to control the operating and hanging activities of an afiliate company. It Is more likely then not that a company's tax position will be e. Bule Base ustained upon examination by the Internal Revenue Service. the sum of the undiscounted future cash flows from the use of f. Rule Base plant asset is less than its carrying valve