G23 Ix E 1 Chapter 2. Question 1 R EEL Accounting principle Conservatism Consistency Cost Distinct business entity Full disclosure Going concern Matching Materiality Monetary unit Objectivity Time period Accounting Principle Business Activity A hotel purchases a new PMS and then, each month, expenses a portion of the system's cost over its useful life. The value of land purchased by a business owner is recorded on the business's balance sheet at the land's purchase price, rather than at the land's currently appraised value A bar maintains its daily sales records in a POS system and then utilizes those records to prepare its monthly income statement The expenses of a hotel's owners are kept completely separate from those of the hotel they own A seasonal resort indicates on its financial statements that its fiscal year runs from October 1 to September 30 Each month a hotel records accrued payroll expense due and payable in the following month A restaurant expenses, in the month they were purchased, the full cost of measuring cups bought for use in its bakery rather than depreciate the cups' cost over their 10-year estimated useful life. A Canadian hotel company with international operations reports its annual financial results in Canadian dollars. A caterer records the food expense incurred this month for products purchased to be used in preparing a wedding banquet that will not be held until next month A hotel's somey predicts the hotel will lose in a personal injury suit brought against the hotel. As a result, the hotel reports the estimated judgment against it in footnotes to its financial statements. The expense of a dishwasher purchased by a restaurant for $10,000 is recorded and then depreciated for that exact amount despite the fact that the restaurant's equipment supplier paid only 58,000 for the 01