Textbook Problem

CORNERSTONE 2.1 Four statements are given below.

1. Pewterschmidt Company values its inventory reported in the financial statements in terms of dollars instead of units
2. Property, plant, and equipment is recorded at cost (minus any accumulated depreciation) instead of liquidation value.
3. The accounting records of a company are kept separate from its owners.
4. The accountant assigns revenues and expenses to specific years before preparing the financial statements.

Required:

Give the accounting assumption that is most applicable to each of the statements.