Match each of the numbered transactions to the accounting terms A through F applicable to recording and
Question:
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.
Step by Step Answer:
College Accounting Ch 1-14
ISBN: 9781260904314
1st Edition
Authors: John Wild, Vernon Richardson, Ken Shaw