Identify the accounting principle or assumption that best reflects each situation. Situation Prswer is complete but not entirely correct. 1. Information is based on actual costs incurred in transactions. Business entity assumption 2. Financial statement details that would impact decisions are often disclosed in the footnotes. Expense recognition (matching) principle 3. A company records the expenses incurred to generate the revenues reported. Business entity assumption {:[" 4. The life of a company can be divided into time periods, and useful reports can be prepared for "],[" those periods. "]:} Full disclosure principle 5. Transactions and events are shown in monetary units. Full disclosure principle 6. Financial statements reflect the assumption that the b