1. Monetary Unit Assumption

2. Revenue Recognition Principle

3. Economic Entity Assumption

4. Historical Cost Principle

In each of the situations below, indicate which principle or assumption has been violated. Situation \#1: The president of Alba Inc. used his expense account to purchase a new Ford Explorer solely for personal use. Situation \#2: Because the general level of prices increased during the year, Alba Inc. determined that there was a $25,000 understatement of depreciation expense and decided to record that understatement in the financial statements. Situation \#3: Alba Inc. acquired new equipment during a sale. The equipment was worth $500,000 and was acquired at $300,000. Alba Inc. recorded the equipment in the accounts at $500,000. Situation \#4: Alba Inc. receives $10,000 from their tenants on December 31,2022 . This amount is for the January rent. Alba Inc. includes this $10,000 in the Income Statement for the year ended 12/31/2022