The accountant for Marina Company makes the following assumptions or performs the following LO 2 Applications of Accounting LO 3 Concepts Related to Accrual LO 4 Accounting activities:

1. In estimating the life of a building, assumes that the business will last indefinitely.

2. Records a sale when the customer is billed.

3. Postpones the recognition of a one-year insurance policy as an expense by initially recording the expenditure as an asset.

4. Recognises the usefulness of financial statements prepared on a monthly basis even though they are based on estimates.

5. Recognises, by making an adjusting entry, wages expense that has been incurred but not yet recorded.

6. Prepares an income statement that shows the revenues earned and the expenses incurred during the accounting period.

Tell which of the following concepts of accrual accounting most directly relates to each of the assumptions and actions above:

(a) periodicity,

(b) going concern,

(c) matching rule,

(d) revenue recognition,

(e) deferral, and

(f) accrual.