f. a. 2. For each of the following, identify the assumption, principle, constraint, qualitative characteristic described or to be applied (5 points). Not all will be used and some may be used more than once. 2. 2. 3. 4. 5. 6. 7. 8. 9. 10. Allocates expenses to match with revenues in the proper period Ensures all relevant information is reported. Rationale as why plant assets are not reported at liquidation value. Financial information of firms with shared ownership (over 50%) is consolidated. Assumes dollar is the measurement of financial information. Firms in same industry use same accounting principles. Two fundamental qualities that make accounting information useful (list both) Neutrality is an ingredient of this fundamental quality Unbiased estimates is descriptive of this qualitative characteristic. The quality that describes the ability of users to estimate future cash flows from accounting information. Economic entity assumption b. Relevance C. Faithful representation d. Predictive value e. Confirmatory value Neutrality g. Expense recognition principle h. Cost constraint i. Verifiability j. Comparability k. Going concern assumption I. Monetary unit assumption m. Full disclosure principle n. Revenue recognition principle