Match each of the following transactions and events to the accounting principle applicable to recording and reporting them.

a. Business entity principle

b. Objectivity principle

c. Cost principle

d. Going concern principle

e. Monetary unit principle

f. Revenue recognition principle

My concern is question #1. Please explain. Thanks.

_____1. An insurance company receives insurance premiums for six future month's worth of coverage. _____2. Mr Jones, a sole proprietor, pays for his daughter's preschool out of business funds.

_____3. To make the balance sheet look better, Mr Jones added several thousand dollars to the Equipment account that he believed was undervalued.

_____4. A building is for sale at $480,000. An appraisal is given for $450,000. _____5. Mayan Imports receives a shipment from Mexico. The invoice is stated in pesos.