Please select the foundation principle, qualitative characteristic or constraint most closely associated with each statement. Only one response per statement. (10 marks) Relates costs of earning revenue with the revenue recognized in a particular period. Acquisition cost is the proper starting point for asset valuation. Cost of collecting and reporting information on cash flow per share should not exceed the estimated value to users Separate entity 2. Continuity Establishes the rationale of accounting on a non- liquidation basis 3. Unit of measure Time period (Periodicity) Distinguishes personal transactions of the owners from transactions of the business 5 Historical cost convention 6 Freedom from material error Provides that an asset with a four-year estimated 6. Freedom from material error. Provides that an asset with a four-year estimated life and a cost of $15 can be expensed when it is acquired. 7. Revenue recognition 8. Comparability 9. Full disclosure principle A company cannot change its method of accounting for inventory (e.g. FIFO to weighted average and back again) each accounting period. 10. Matching 11. Confirmatory value All significant post balance sheet date events are reported. 12. Cost/benefit Requires measurement of the income and financial position of entities at regular intervals. Max Martin uses the financial statements to check predictions about the company's operating results