-20Accounting,%20Volume%201.12th%20Canadian%20Edition%20.pdf E2.6 (LO 4) videa (Foundational Principles) The foundational principles and assumptions of accounting are as follows: Presentation and Recognition/Derecognition Measurement Disclosure 1. Economic entity 5. Periodicity 10. Full - disclosure 2. Control 6. Monetary 3. Revenue recognition and realization 4. Matching unit 7. Going concern 8. Historical cost 9. Fair value and value in use Instructions For each situation that follows, identify by its number the foundational principle above that is described. a. Allocates expenses to revenues in the proper period. b. Indicates that market value changes after the purchase are not recorded in the accounts unless impairment exists. (Do not use the revenue recognition principle.) c. Ensures that all relevant financial information is reported. d. Is why plant assets are not reported at their liquidation value. (Do not use the historical cost principle.) e. Related to the economic entity principle, defines the entities that should be consolidated in the financial statements. f. Indicates that personal and business record-keeping should be separately maintained. 8. Separates financial information into time periods for reporting purposes. h. Permits the use of market valuation in certain specific situations. 1. Requires passing of risks and rewards, measurability, and collectibility before recording the transaction. J. Assumes that the dollar is the measuring unit for reporting financial performance. Ho u ndational Prinpineal The following Ch 4 select proble....pdf B9R DRAP