Match each of the numbered transactions to the accounting terms A through F applicable to recording and

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Match each of the numbered transactions to the accounting terms A through F applicable to recording and reporting them.

A. Business entity assumption 

B. Reliability 

C. Cost principle 

D. Going-concern assumption 

E. Monetary unit assumption 

F. Revenue recognition principle 


1. Aninsurance company receives insurance premiums for six future months’ worth of coverage.

2. A building is for sale at \($480,000;\) an appraisal is given for \($450,000.\)

3. Helen Cho, a sole proprietor, pays for her daughter’s preschool out of business funds.

4. Mayan Imports receives a shipment from Mexico; the invoice is stated in pesos.

5. To make the balance sheet look better, Helen Cho added several thousand dollars to the Equipment account that she believed was undervalued.

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College Accounting Ch 1-14

ISBN: 9780073346892

1st Edition

Authors: John Wild, Vernon Richardson, Ken Shaw

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