Presented below are a number of operational guidelines and practices that have developed over time.

Select the assumption, principle, or constraint that most appropriately justifies these procedures and practices. (Do not use qualitative characteristics.)

(a)Intangible assets are capitalized and amortized over periods benefited.select an option

Expense Recognition and Revenue Recognition Principles

Measurement (historical cost) Principle

Economic Entity Assumption

Measurement (fair value) Principle

Materiality

Full Disclosure Principle

Revenue Recognition Principle

Periodicity Assumption

Expense Recognition Principle

(b)Brokerage firms use fair value for purposes of valuing investments.select an option

Periodicity Assumption

Full Disclosure Principle

Measurement (historical cost) Principle

Measurement (fair value) Principle

Economic Entity Assumption

Expense Recognition Principle

Materiality

Revenue Recognition Principle

Expense Recognition and Revenue Recognition Principles

(c)Each enterprise is kept as a unit distinct from its owner or owners.select an option

Expense Recognition and Revenue Recognition Principles

Expense Recognition Principle

Measurement (historical cost) Principle

Measurement (fair value) Principle

Periodicity Assumption

Materiality

Full Disclosure Principle

Revenue Recognition Principle

Economic Entity Assumption

(d)All significant post-balance-sheet events are reported.select an option

Full Disclosure Principle

Economic Entity Assumption

Expense Recognition and Revenue Recognition Principles

Periodicity Assumption

Expense Recognition Principle

Revenue Recognition Principle

Measurement (historical cost) Principle

Measurement (fair value) Principle

Materiality

(e)Fair value changes of fixed assets are not recognized in the accounting records.select an option

Expense Recognition and Revenue Recognition Principles

Revenue Recognition Principle

Economic Entity Assumption

Measurement (fair value) Principle

Expense Recognition Principle

Full Disclosure Principle

Materiality

Periodicity Assumption

Measurement (historical cost) Principle

(f)Supplemental information is presented so that investors will not be misled.select an option

Economic Entity Assumption

Periodicity Assumption

Revenue Recognition Principle

Materiality

Measurement (historical cost) Principle

Full Disclosure Principle

Expense Recognition and Revenue Recognition Principles

Expense Recognition Principle

Measurement (fair value) Principle

(g)Revenue is recorded at point of sale.select an option

Revenue Recognition Principle

Measurement (fair value) Principle

Measurement (historical cost) Principle

Full Disclosure Principle

Expense Recognition and Revenue Recognition Principles

Expense Recognition Principle

Materiality

Economic Entity Assumption

Periodicity Assumption

(h)All important aspects of bond indentures are presented in financial statements.select an option

Revenue Recognition Principle

Periodicity Assumption

Economic Entity Assumption

Measurement (historical cost) Principle

Materiality

Expense Recognition Principle

Expense Recognition and Revenue Recognition Principles

Measurement (fair value) Principle

Full Disclosure Principle

(i)Rationale for accrual accounting.select an option

Expense Recognition Principle

Measurement (historical cost) Principle

Economic Entity Assumption

Revenue Recognition Principle

Periodicity Assumption

Full Disclosure Principle

Measurement (fair value) Principle

Materiality

Expense Recognition and Revenue Recognition Principles

(j)The use of consolidated statements is justified.select an option

Economic Entity Assumption

Expense Recognition and Revenue Recognition Principles

Measurement (historical cost) Principle

Materiality

Expense Recognition Principle

Measurement (fair value) Principle

Revenue Recognition Principle

Full Disclosure Principle

Periodicity Assumption

(k)Reporting must be done at defined time intervals.select an option

Full Disclosure Principle

Economic Entity Assumption

Revenue Recognition Principle

Expense Recognition and Revenue Recognition Principles

Periodicity Assumption

Expense Recognition Principle

Measurement (fair value) Principle

Measurement (historical cost) Principle

Materiality

(l)An allowance for doubtful accounts is established.select an option

Revenue Recognition Principle

Measurement (fair value) Principle

Full Disclosure Principle

Materiality

Economic Entity Assumption

Periodicity Assumption

Expense Recognition and Revenue Recognition Principles

Measurement (historical cost) Principle

Expense Recognition Principle

(m)Goodwill is recorded only at time of purchase.select an option

Measurement (fair value) Principle

Revenue Recognition Principle

Periodicity Assumption

Measurement (historical cost) Principle

Full Disclosure Principle

Economic Entity Assumption

Expense Recognition and Revenue Recognition Principles

Expense Recognition Principle

Materiality

(n)A company charges its sales commission costs to expense.