It is important to understand why some accounting information is reported in a certain way in the financial statements. For example, when a company is formed, we assume it will remain in business for an indefinite period of time, but they must provide a reporting of the financial condition of the company periodically. All relevant information about the company must be disclosed in these periodic reports. Owners of a company cannot mix their personal transactions with the company's financial transactions. All expenses incurred to generate revenue in a given accounting period must be reported in the same accounting period as the revenue. Revenue can only be recognized when it is realized. To ensure obiectivity, most assets (with some exceptions) must be reported at cost. These and other concepts provide the basis as to how and when we report information in the financial statements Assignment: Research the following concepts and provide a brief description of your understanding of each concept, with an example of how it is applied. Please do not copy a definition directly, you must provide an explanation demonstrating comprehension of the meaning of each term: 1. The Economic Entity Concept 2. Accounting Period Concept 3. Going Concern Concept 4. The Cost Principle 5. Matching Principle 6. Revenue Recognition Principle 7. Full Disclosure Principle