SHORT EXERCISES S1-1. Accounting principles (Learning Objective 2) 5-10 min. Place the corresponding letter of the definition next to the term. a. An organization that stands as a separate economic unit must not have financial affairs confused with that of other entities. b. Data must be verifiable. c. Standards developed by FASB. d. Acquired assets and services should be recorded at their actual cost. 1. Cost principle 2. Entity concept 3. Generally accepted accounting principles 4. Reliability principle