Permits the expensing of all expenditures for supplies that do not exceed a specified amount.

Permits the use of market value for the valuation of assets in certain situations.

$3.$ Allocates expenses to revenues in the correct period.

$4.$ Ensures that all companies provide sufficient information about such items as the amount of sales revenue.

$5.$ Requires that changes in the market value, after an asset is purchased, are not

recorded in the accounts.

$6.$ The reason that equipment is not reported at liquidation value.

$7.$ Separates the reporting of financial information into specified time intervals.

$8.$ Assumes that the dollar is the "measuring stick" used for financial reporting.

$9.$ The assumption that states that the activity of a business should be kept separate from its owners.

LIST OF PRINCIPLES AND MODIFYING CONVENTIONS UNDERLYING

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

Going concern assumption

G

Revenue recognition principle

Economic entity assumption

H

Expense recognition principle

Monetary unit assumption

I

Full disclosure principle

D

Periodicity assumption

J

Cost$-$benefit constraint

E

Measurement principle$-$historical cost

Measurement principle$--$fair value