Presented below are the assumptions made and characteristics of information used in this chapter. 1. Accounting entity assumption 2. Going concern assumption 3. Accrual basis assumption 4. Period assumption 5. Relevance 6. Faithful representation 7. Comparability 8. Verifiability 9. Materiality 10. Timeliness 11. Understandability (a) Repair tools are expensed when purchased. These repair tools have a useful life of more than one accounting period. (b) Two business financial reports can be viewed together. (c No information is missing or biased (d) Financial information is separated into time periods for reporting purposes. Independent people can reach the same figures. (f) Personal and business record keeping should be separately maintained. (g) Information that can be used to predict the future. (h Financial reports are issued promptly.

The assumptions and characteristics of information you listed can be matched with the scenarios you provided as follows:

(a) Repair tools are expensed when purchased. These repair tools have a useful life of more than one accounting period. This scenario relates to the Accrual basis assumption. This assumption states that transactions should be recorded when they occur, not when cash is paid or received. In this case, the repair tools are expensed when purchased, not over their useful life.

(b) Two business financial reports can be viewed together. This scenario relates to the Comparability characteristic. Comparability allows users to identify and understand similarities in, and differences among, items.

(c) No information is missing or biased. This scenario relates to the Faithful representation characteristic. Faithful representation means that the financial reports represent the economic phenomena in a truthful and non-misleading manner.

(d) Financial information is separated into time periods for reporting purposes. This scenario relates to the Period assumption. This assumption states that the life of a business can be divided into artificial time periods and that useful reports covering those periods can be prepared for the business.

(e) Independent people can reach the same figures. This scenario relates to the Verifiability characteristic. Verifiability means that different knowledgeable and independent observers could reach consensus, although not necessarily complete agreement, that a particular depiction is a faithful representation.

(f) Personal and business record keeping should be separately maintained. This scenario relates to the Accounting entity assumption. This assumption states that the business is separate from its owners and other businesses, and its records should be kept on this basis.

(g) Information that can be used to predict the future. This scenario relates to the Relevance characteristic. Relevant information is capable of making a difference in the decisions made by users by helping them evaluate the effects of past, present or future transactions or confirm, or correct, their past evaluations.

(h) Financial reports are issued promptly. This scenario relates to the Timeliness characteristic. Timeliness means having information available to decision-makers before it loses its capacity to influence decisions.