Match the descriptions with the appropriate GAAP terms.

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  1. Transactions are reported using a common monetary unit of measure
  2. Statements are not biased
  3. The solution with the less financially favorable outcome should be chosen
  4. Assets are recorded at the cost incurred to acquire them
  5. A business should use the same methods for preparing financial statements from period to period
  6. Reported items should be those that may affect financial decisions
  7. A business has an existence that is separate and distinct from that of its owners
  8. Information made available should not pose a financial burden to the business, yet still provide necessary information to make judgements
  9. When it is reasonable, expenses are matched with revenue
  10. An entity's life can be subdivided into time periods to report its financial results
  11. Accountants assume that the business entity will continue operations indefinitely.
  12. Holds that companies may not record revenue until (1) it is realized or realizable and (2) when it is earned
 

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