hapter 2 introduces you to the foundational principles of accounting, which are as follows:

Recognition/De-recognition

Measurement

Presentation and Disclosure

Economic Entity

Periodicity

Full Disclosure

Control

Monetary Unit

Revenue Recognition and Realization

Going Concern

Matching

Historical Cost

Fair Value

For each situation that follows, identify the foundational principle that is most applicable:

1.Price-level changes, meaning inflation and deflation, are not recognized in the accounting records.

2.Sufficient financial information is presented so that reasonably prudent investors will not be misled.

3.Goodwill is recorded only at the time of a business combination and does not change unless the goodwill becomes impaired.

4.There is no intent to liquidate the company's operations or activities.

5.Market value is used by companies for the valuation of certain securities that are regularly bought and sold.

6.After initial acquisition, the entity values land at its original transaction price.

7.All significant post-balance sheet events are reported.

8.Revenue is recorded at the point of sale.

9.Sales commission costs are charged to expense in the period of the sale.

10.Reporting must be done at defined time intervals.