Intermediate Accounting-1 Question 6: In the blanks provided to the right below, select the letters of the undertying assumption, measurement method, qualitative criteria, or constraint most closely associated with the statements. Some letters may be used more than once and some may not be used at all. A Separate-entily assumplion B. Conlinuly assumption C. Relevance D. Timeperiod assumption E. Costbenefit F. Revenue recognition C. Matching H. Historical cost I. Unit-of-measure assumption . Failhful representalion K. Verifiability L. Full disclosure Any accounting method is acceptable for small items that will not change users' 1. decisions. 2. Assumes that al financial statement elements can be meaningully described in dollar 3. Long-term assets that increase in value are not normally writen up in the financial 3. statements. 4. Assets and earnings should be neither understated nor overstated. 5. The estimated future cost of fulifing warranties that may not arise until two years into the fure are accrued in the period of the sale. 6. It is not necessary to use a complex accounting method for ininor items that are highly unlikely to improve the decisions of financial statement users. 7. If must be possible to numericaly confirm all amounts reported in the body of the financial 8. The various costs associated with a revenue transaction may be deferred untit the 8. revenue is earned. 9. The personal transactions of owners should be kept separate from transactions of the 0. business. 10. Signilicant recognized and many nonrecognized fiems should be folly described in the noles to the financial statements. 11. Enables historical cost, rather than liguidation values, to be used. 12. Enables measurement of the income and financial posilion of entilies at regular intervals