![]() Historical cost principle: requires companies to account and report assets and liabilities acquisition costs rather than fair market value.Time-period principle: implies that the economic activities of an enterprise can be divided into artificial time periods.The FASB accepts the nominal value of the US Dollar as the monetary unit of record unadjusted for inflation. Monetary Unit principle: assumes a stable currency is going to be the unit of record.The business will continue to exist in the unforeseeable future. ![]() Only when liquidation is certain this assumption is not applicable. This validates the methods of asset capitalization, depreciation, and amortization.
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