Exercise 1-7 (Algo) Identifying accounting principles and assumptions LO C2 Identify the accounting principle or assumption that best reflects each situation. Situation 1. A business is accounted for separately from other business entities and its owner. 2. Record expenses incurred to generate the revenue reported. 3. A company reports details behind financial statements that would impact users' decisions. 4. Financial statements reflect the assumption that the business continues operating. 5. Revenue is recorded when products and services are delivered. 6. Information is based on actual costs incurred in transactions. Principle or Assumption

Exercise 1-7 (Algo) Identifying accounting principles and assumptions LO C2 Identify the accounting principle or assumption that best reflects each situation