Principles, Assumptions, Constraint Following are accounting assumptions, accounting principles, and constraints, lettered a through /. a. Economic entity assumption b. Going concern assumption c. Periodicity assumption d. Monetary unit assumption e. Revenue recognition principle f. Measurement principle g. Expense recognition principle h. Full-disclosure principle 1. Cost effectiveness constraint Match the following phrases 1 through 9 with their best assumption, principle or constraint. Key Phrase Assumption, Principle orConstraint 1. Recognition of revenue when performance obligation is met. Cost effectiveness constraint x 2. Common denominator-the U.S. dollar. Going concern assumption 3. Expenses recorded as revenue is incurred, as expense is incurred, or systematically over time. Monetary unit assumption 4. Preparation cost versus value of benefit to the user. x Periodicity assumption = x 5. Separate and apart from its owners and other entities. 6. Report all relevant information. 7. Reporting periods-such as monthly, quarterly, or yearly. 8. Historical cost and fair value measurements. 9. Business continuity for the foreseeable future. Expense recognition principle Measurement principle = x = x Expense recognition principle Revenue recognition principle Expense recognition principle = x = x x