Match the situation with the best term to explain why things are done this way. Click to view the situations and accounting terms.) Accounting Term Situation 1. Every year a business uses the same account names so it can evaluate results between years. 2. When we prepare a financial statement, we show all assets at the price we paid for them. 3. A business should not spend $1,000 on counting and recounting $500 worth of inventory. 4. If we assume the business is going to go bankrupt and, as a result, we record a truck on the financial statement at the price we could get for it if we tried to sell it quickly, we are following this accounting assumption 5. We try to include information in the accounting records such that financial statements provide enough information for readers to make an investment decision 6. A car dealership will report profits for the parts department separate from the service department so that senior management can see how well each part of its business is doing. o mk: Home... HW Score: 44.44%, 4 of 9 points O Points: 0 of 1 Question 3, E1-3 (book/s... h the best term to explain why things are done this way. 1 ations and Accounting Terms 1. Every year a business uses the same account names so it can evaluate a. Cost principle results between years. 2. When we prepare a financial statement, we show all assets at the price we b. Going concern assumption paid for them. 3. A business should not spend $1,000 on counting and recounting $500 worth C. Relevance characteristic of inventory. 4. If we assume the business is going to go bankrupt and, as a result, we record d. Cost-benefit constraint a truck on the financial statement at the price we could get for it if we tried to Sell it quickly, we are following this accounting assumption 5. We try to include information in the accounting records such that financial e Economic entity assumption statements provide enough information for readers to make an investment decision 6. Acar dealership will report profits for the parts department separate from the 1 Comparability characteristic service department so that senior management can see how well each part of its business is doing. Print Done T Print Media Clear All Chec Use Privacy Policy Copyright 2021 Pearson Education Inc. All Rights Reserved 16 &tv S A 9 IW MacBook Pro Q Search or enter website name G $