y uy lulet the accounting concept that relates to each statement or phrase below. 1. Inflation causes a violation of this assumption. 2. Information that could affect decision making should be reported. 3. Recognizing expenses in the period they were incurred to produce revenue. 4. The basis for measurement of many assets and liabilities. 5. Relates to the qualitative characteristic of timeliness. 0. All economic events can be identified with a particular entity. 7. The benefits of providing accounting information should exceed the cost of doing so. 8. A consequence is that GAAP need not be followed in all situations. 9. Not a qualitative characteristic, but a practical justification for some accounting choices. 10. Assumes the entity will continue indefinitely Determine the response that best completes the following statements or questions. 1. The primary objective of financial reporting is to provide information a. About a firm's management team b. Useful to capital providers c. Concerning the changes in financial position resulting from the income-producing efforts of the entity d. About a firm's financing and investing activities 2. Statements of Financial Accounting Concepts issued by the FASB a. Represent GAAP b. Have been superseded by SFAS c. Are subject to approval of the SEC d. Identify the conceptual framework within which accounting standards are developed 3. In general, revenue is recognized when a. The sales price has been collected b. A purchase order has been received c. A good or service has been delivered to a customer d. A contract has been signed 4. In depreciating the cost of an asset, accountants are most concerned with a. Conservatism b. Recognizing revenue in the appropriate period c. Full disclosure d. Recognizing expense in the appropriate period 5. The primary objective of the matching principle is to a. Provide full disclosure b. Record expenses in the period that related revenues are recognized c. Provide timely information to decision makers d. Promote comparability between financial statements of different periods 6. The separate entity assumption states that, in the absence of contrary evidence, all entities will survive indefinitely a. True b. False