Identifying accounting principles and assumptions- Match each of the numbered descriptions with the principle or assumption it best reflects.

Each business is accounted for separately from its owner or owners.

Business entity assumption

Information is based on actual costs incurred in transactions.

Cost principle

A company reports details behind financial statements that would impact users' decisions.

Full disclosure principle

Derived from long-used and generally accepted accounting practices such as the concepts, assumptions, and guidelines for preparing the financial statements.

General accounting principle

Financial statements reflect the assumption that the business continues operating.

Going-concern assumption

A company records the expenses incurred to generate the revenues reported.

Matching (expense recognition) principle

Revenue is recorded when products and services are delivered.

Revenue recognition principle

Usually created by a pronouncement from an authoritative body.

Specific accounting principle