Exercise 1-3 Match the situation with the best term to explain why things are done this way. 1. Every year a business uses the same account a. Historic cost principle names so it can evaluate results between years. 2. When we prepare a financial statement, we show all b. Going concern assumption assets at the price we paid for them. 3. A business should not spend $1,000 on counting c. Relevance characteristic and recounting $500 worth of inventory. 4. If we record a truck on the financial statement at the d. Cost-benefit constraint price we could get for it if we tried to sell it quickly, we are violating this accounting assumption. 5. We try to include information in the accounting e. Economic entity assumption records such that financial statements provide enough information for readers to make an invest- ment decision. 6. A car dealership will report profits for the parts f. Comparability characteristic department separate from the service department so that senior management can see how well each part of their business is doing