State the Accounting Assumption, Principle, Information Characteristic, or Constraint That

question 27

Essay

State the accounting assumption, principle, information characteristic, or constraint that is most applicable in the following cases.
1. All significant post-balance sheet events are reported.

2. Personal transactions of the proprietor are distinguished from business transactions.

3. Goodwill is capitalised and amortised over the periods benefited.

4. Assuming that dollars today will buy as much as 10 years ago.

5. Rent paid in advance is recorded as prepaid rent.

6. Financial statements are prepared each year.

7. All payments less than $25 are expensed as incurred. (Do not use conservatism.)

8. The company employs the same inventory valuation method from period to period.

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Definitions:

Safe Sex

Sexual activities that reduce the risk of transmitting or acquiring sexually transmitted infections and prevent unwanted pregnancy, often involving the use of condoms or other barrier methods.

Potty Training

The process of teaching a young child to use the toilet for urination and defecation.

Eating Utensils

Tools used for the purpose of eating, such as forks, knives, and spoons.

Child-proofed

An environment or items that have been made safe for children by reducing risks and securing hazards.