Listed below are accounting concepts discussed in this chapter.

a. Economic entity assumption                   f. Conservatism

b. Going concern assumption                      g. Matching

c. Periodicity assumption                              h. Full-disclosure principle

d. Monetary unit assumption                      i. Cost effectiveness

e. Historical cost principle                             j. Materiality

Identify by letter the accounting concept that relates to each statement or phrase below.

 _____ 1. Inflation causes a violation of this assumption.

 _____ 2. Information that could affect decision making should be reported.

 _____ 3. Recognizing expenses in the period they were incurred to produce revenue.

 _____ 4. The basis for measurement of many assets and liabilities.

 _____ 5. Relates to the qualitative characteristic of timeliness.

 _____ 6. All economic events can be identified with a particular entity.

 _____ 7. The benefits of providing accounting information should exceed the cost of doing so.

 _____ 8. A consequence is that GAAP need not be followed in all situations.

 _____ 9. Not a qualitative characteristic, but a practical justification for some accounting choices.

 _____10. Assumes the entity will continue indefinitely.