Question 2 Choose one foundational principle to justify each of the following procedures and practices: 1. Warranty expense is accrued at the end of accounting periods. ( ) 2. The entity accrues interest income at the end of accounting periods. ( ) 3. Accounting policies are discussed in the notes to financial statements. ( ). 4. Based on the assumption that the company will continue to operate within the next 12 months, we report the asset at its historical cost. ( ). 5. The owner's car is not reported as the store's assets. ( ) 3 6. The company' life is divided into artificial accounting periods. ( 7. The investment is measured at its current value. ( ) 8. The entity recognizes the depreciation expense of property, plant and equipment at the end of accounting periods. ( )