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Please select the foundation principle, qualitative characteristic or constraint most closely associated with each statement. Only one response per statement. (10 marks)

Question 17 options:

123456789101112 All significant post balance sheet date events are reported. 123456789101112 Relates costs of earning revenue with the revenue recognized in a particular period. 123456789101112 Max Martin uses the financial statements to check predictions about the company's operating results. 123456789101112 A company cannot change its method of accounting for inventory (e.g. FIFO to weighted average and back again) each accounting period. 123456789101112 Cost of collecting and reporting information on cash flow per share should not exceed the estimated value to users. 123456789101112 Provides that an asset with a four-year estimated life and a cost of $15 can be expensed when it is acquired. 123456789101112 Establishes the rationale of accounting on a non-liquidation basis. 123456789101112 Distinguishes personal transactions of the owners from transactions of the business. 123456789101112 Requires measurement of the income and financial position of entities at regular intervals. 123456789101112 Acquisition cost is the proper starting point for asset valuation.

1. Separate entity 2. Continuity 3. Unit of measure 4. Time period (Periodicity) 5. Historical cost convention 6. Freedom from material error. 7. Revenue recognition 8. Comparability 9. Full disclosure principle 10. Matching 11. Confirmatory value 12. Cost/benefit

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