Indicate what impact the following transactions would have on the accounting equation, Assets =Liabilities+Equity. Match the correct term with its definition. Dermi.Ifuncertaintyinapotentialfinancialestimate,acompanyshoulderrontheDefinition side of caution and report the most conservative amount Also known as the historical cost principle, states that everything the company owns or controls (assets) must be recorded at their value at the date of acquisition iii. (Also referred to as the matching principle) matches expenses with associated revenues in the period in which the revenues were generated Business must report any business activities that could affect what is reported on the financial statements System of using a monetary unit by which to value the transaction, such as the US dollar Period of time in which you performed the service or gave the customer the product is the period in which revenue is recognized Business may only report activities on financial statements that are specifically related to company operations, not those activities that affect the owner personally Provide the missing amounts of the accounting equation for each of the following companies. Consider the following accounts, and determine if the account is an asset, a liability, or equity. Identify the financial statement on which each of the following accounts would appear: the Income Statement, the Retained Earnings Statement, or the Balance Sheet. Indicate what impact the following transactions would have on the accounting equation, Assets = Liabilities + Equity. Prepare an income statement. Prepare a statement of retained eamings. Prepare a balance sheet