Identify the accounting principle or assumption that best reflects each situation. Situation 1. Each business is accounted for separately from its owner or owners 12 A company records the expenses incurred to generate the revenues 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 Information is based on actual costs incurred in transactions 6 Transactions and events are shown in monetary units Principle or Assumption