Exercise 1-7 Save 1 1 Identify the accounting principle or assumption that best reflects each situation Principle Assumption 4 points 023859 Situation A company reports details behind financial statements that would impact users declalon 2 Financial statements reflect the assumption that the business continuen operating 3. A company records the expenses incurred to generate the revenuen reported 4 Each business is accounted for separately from its owner or owners 5. Revenue is recorded when products and services are delivered 6. Information is based on actual costs incurred in transactions eBook Print References Exercise1-6 Saved 1 Identify whether each description best refers to a sole proprietorship, partnership, corporation, or limited liability company Business Organization 4 points a 8 02:36:42 Description Micah and Nancy own Financial Services, which pays a business income tax. Micah and Nancy do not have personal responsibility for the debts of Financial Services D Riley and Kay own Speedy Packages, a courier service Both are personally liable for the debts of the business IBC Services does not have separate legal existence apart from the one person who owno i d Trent Company is owned by Trent Malone, who is personally liable for the company's debts. Ownership of Zander Company is divided into 1,000 shares of stock. The company pays a business income tax Physio Products does not pay a business Income tax and has one owner. The owner has unlimited lability for business debt. g A Company pays a business income tax and has two owners h Jetty Auto is a separate legal entity from its owner, but it does not pay a business income tax ebook Print References