Presented below are the assumptions, principles, and constraints listed in Chapter 2.

a.Economic Entity Assumption

b.Going Concern Assumption

c.Monetary Unit Assumption

d.Periodicity Assumption

e.Measurement Principle (Historical Cost)

f.Measurement Principle (Fair Value)

g.Revenue Recognition Principle

h.Expense Recognition Principle

i.Full Disclosure Principle

j.Cost Constraint

On a separate sheet of paper, list the numbers 1-8.For each number, select the ONE letter corresponding to the assumption, principle, or constraint that BEST justifies the procedures and practices listed below.You may use a letter more than once.

1.Fair value changes subsequent to purchase are not recognized in the accounting records.

2.All significant post-balance sheet events (events that occur after the balance sheet date but before the financial statements are issued) are reported in the financial statements.

3.Intangible assets are amortized over the periods benefited.

4.Rationale for accrual accounting.

5.In the United States, the dollar is the "measuring stick" used to report financial information.

6.Plant assets are not reported at liquidation value.

7.When one corporation owns more than 50% of the outstanding voting stock of another company, that corporation prepares consolidated financial statements.

8.Reporting must be done at defined time intervals.