1. Match each of the following scenarios with the accounting principle or accounting assumption that it best illustrates.

Scenario	Accounting Principle or Assumption
Several years after Thomas Company purchased new office equipment, the companys accounting records still show the original purchase price.
The home of Rob Elliot, the owner of GGE Enterprises Inc., is not listed among the companys assets.
Despite several years of falling sales, Thomas Company continues to forecast sales and make strategic plans to raise revenues and cut expenses.
Thomas records expenses incurred to produce the sales for the month.
GGE Enterprises records a deposit received from a customer for work to be performed later in the month. The customer is billed for the remaining amount after the work is complete, and the customers payment is recorded.
Thomas Company provides earnings information to investors at the end of every quarter.
The accounting records of Thomas Company are in dollars, not euros, although the Ohio-based company is owned by a German firm.

2. Thomas Company has decided to purchase a company vehicle. The accountant was given all of the purchase details. Which should be used to record the vehicle in the accounting records?

The average selling price of similar vehicles in the area.

The manufacturers suggested retail price (MSRP).

The price negotiated with the dealer.

The amount of the loan with the bank.