INDICATES THE PRINCIPLE OR ASSUMPTION OF ACCOUNTING DESCRIBED IN THE FOLLOWING PREMISES ______ 1. INCOME IS RECORDED WHEN EARNED. ______ 2. THE INFORMATION IN THE BOOKS IS BASED ON CURRENT COSTS INCURRED IN TRANSACTIONS. ______3. THE BUSINESS IS CREATED BASED ON AGREEMENTS BY AN AUTHORITY. ______4. THE FINANCIAL STATEMENTS REFLECT THE ASSUMPTION THAT THE BUSINESS IT WILL CONTINUE TO OPERATE. ______ 5. THE COMPANY REPORTS DETAILS IN ITS FINANCIAL STATEMENTS WHICH MAY IMPACT THE DECISIONS OF YOUR USERS. ______ 6. THE COMPANY RECORDS THE EXPENSES INCURRED TO GENERATE INCOME. ______ 7. ARE DERIVED FROM THE USE AND PRACTICES OF ACCOUNTING PRINCIPLES GENERALLY ACCEPTED (GAAP). ______8. EACH OF THE BUSINESSES IS OPERATED SEPARATELY FROM ITS OWNER OR OWNERS.