Identify the accounting principle or assumption that best reflects each situation. Principle or Assumption Situation 1. Each business is accounted for separately from its owner or owners. 2. Revenue is recorded when products and services are delivered. 3. Information is based on actual costs incurred in transactions. 4. Financial statement details that would impact decisions are often disclosed in the footnotes. 5. A company records the expenses incurred to generate the revenues reported. 6. The life of a company can be divided into time periods, and useful reports can be prepared for those periods.