Indicate which of the assumptions, principles, or constraints most appropriately justifies the use of the procedures and practices listed in A through I below. Use the attached list as the source of your answers. Provide explanations, where appropriate, to support your answer. A 20 C. D. E An asset with a five year estimated life with a cost of $50 is expensed whe it is acquired Maintains the personal transactions of the owners in a different set of accounting records from the transactions of the business entity, Earnings per common share of stock are required to be reported on the income statement Assigns the costs of earning revenue with the corresponding revenue that was earned during an accounting period. Requires that business entities measure income and financial position at regular intervals. Assumes that changes in the value of a business entity's monetary unit are unimportant The amount paid by the business entity is the proper starting point for measuring the value of an asset. Determines when sales and service revenues are to be recorded. Provides the rationale for accounting for the business entity's transactions on a nonliquidation basis F. G. . I 1 BASIC ASSUMPTIONS, PRINCIPLES, AND CONSTRAINTS FOR RECORDING ACCOUNTING TRANSACTIONS Basie Assumptions Basic Principles Constraints Economic entity 5 Historical cost 9 Cost Constraint Going concern 6 Revenue recognition Monetary unit 7 Expense recognition Periodicity 8 Full disclosure 2 3 4