(a) Allocates expenses to revenues in the proper period.
(b) Indicates that fair value changes subsequent to purchase are not recorded in the accounts. (Do not use revenue recognition principle.)
(c) Ensures that all relevant financial information is reported.
(d) Rationale why plant assets are not reported at liquidation value. (Do not use historical cost principle.)
(e) Indicates that personal and business record keeping should be separately maintained.
(f) Separates financial information into time periods for reporting purposes.
(g) Permits the use of fair value valuation in certain industries. (Do not use fair value principle.)
(h) Assumes that the dollar is the "measuring stick" used to report on financial performance. – A. Expense Recongnition Principle
B. Historical Cost Principle
C. Full Disclosure Principle
D. Going Concern Assumption
E. Economic Entity Assumption
F. Periodicity Assumption
G. Industry Practices
H. Monetary Unit Awsumption
-Accrued Expenses (transaction will occur after the balance sheet date).