Michael is the proprietor of a property management company, Apartment Exchange, near the campus of Lunar International College. The business has cash of Birr 10,000 and furniture that cost Birr15,000 and has a market value of Birr16,000. The business debts include accounts payable of Birr7,500. Michael's personal home is valued at Birr 900,000, and his personal bank account has a balance of Birr 10,200. Consider the accounting principles and assumptions discussed in the chapter, and identify the principle or assumption that best matches the situation:

a) Apartment Exchange records furniture at its cost of Birr15,000, not its market value of Birr16,000.

b) Michael expects Apartment Exchange to remain in operation for the foreseeable future.

c) Apartment Exchange reports its financial statements in Ethiopian birr .

d) Michael's personal assets are not recorded on Apartment Exchange's balance sheet.