State whether the statement is true or false: Going concern assumes that the economic life of a business can be divided into artificial time periods.

State whether the statement is true or false: Objectivity means all transactions in accounting must be supported by the source document.

State whether the statement is true or false: The accounting period concept is the idea that the life of a business is divisible into time periods of equal length.

State whether the statement is true or false: Prudence is classified under accounting principles that require to recording assets at cost basis.

State whether the statement is true or false: In presenting a financial report, footnotes are included to provide additional information about economic facts that are not included in the financial statements. This is in accordance with full disclosure principles.

State whether the statement is true or false: A separate entity requires an accountant to choose a consistent accounting method.

State whether the statement is true or false: Managers need to plan the business strategies for 2 to 3 years. This is in accordance with the duality concept.

State whether the statement is true or false: Matching concept must comply with accrual concept in determining the expenses and revenues in the same accounting period.

State whether the statement is true or false: According to the materiality concept, disposing of a photostat machine for a small company can be considered as an immaterial cost for the company.

Identify the principle that describes the situation: This principle suggests that profit or loss for a period is the difference between revenues and expenses during that period.

Identify the principle that describes the situation: The assumption that the life of a business can be measured by the period of 3, 6, 9, or 12 months.

Identify the principle that describes the situation: Assets and expenses are recorded in the accounting books at their original prices.

Identify the principle that describes the situation: When an accountant faces options, the principles require the accountant to choose an option that leads to lower profit or lower assets.

Identify the principle that describes the situation: Assumption that the business will continue in operation for an indefinite period of time. It’s referred to ________________.