Exercise 3-1

Identify the accounting assumption or principle that is described below.

(a)		Periodicity Assumption, Historical Cost Principle, Going Concern Assumption, Economic Entity Assumption, Monetary Unit Assumption, Full Disclosure Principle		Belief that a company will remain in operation for the foreseeable future.
(b)		Full Disclosure Principle, Monetary Unit Assumption, Periodicity Assumption, Historical Cost Principle, Going Concern Assumption, Economic Entity Assumption		Indicates that personal and business record-keeping should be separately maintained.
(c)		Full Disclosure Principle, Historical Cost Principle, Economic Entity Assumption, Monetary Unit Assumption, Periodicity Assumption, Going Concern Assumption		Only those items that can be expressed in money are included in the accounting records.
(d)		Monetary Unit Assumption, Going Concern Assumption, Historical Cost Principle, Periodicity Assumption, Economic Entity Assumption, Full Disclosure Principle		Separates financial information into time periods for reporting purposes.
(e)		Periodicity Assumption, Going Concern Assumption, Full Disclosure Principle, Monetary Unit Assumption Historical Cost Principle Economic Entity Assumption		Measurement basis used when a reliable estimate of fair value is not available.
(f)		Going Concern Assumption, Monetary Unit Assumption, Periodicity Assumption, Economic Entity Assumption, Historical Cost Principle, Full Disclosure Principle		Dictates that companies should report all circumstances and events that make a difference to financial statement users.