Review Problem 3 State the accounting assumption, principle, or constraint that is most applicable in the following cases:1. All payments less than $25 are expensed as incurred. (Do not use conservatism.)2. The company employs the same inventory valuation method from period to period.3. A patent is capitalized and amortized over the periods benefited.4. Assuming that dollars today will buy as much as ten years ago.5. Rent paid in advance is recorded as prepaid rent.6. Financial statements are prepared each year7. All significant post-balance sheet events are reported.8. Personal transactions of the proprietor are distinguished from business transactions.