of the five generally accepted accounting principlal GAAP introduced in the section, indentify which broad accounting principal describes most directly each of the following

as u iii a \\'i n LIE ..nl 63% 2:08 PM Question 2 [5 points] Of the ve Generally Accepted Accounting Principles (GAAP) introduced in this section, identify which broad accounting principle describes most directly each of the following. Marking: 8} Trex is a Canadian company and records and reports transactions in Canadian m, dollars. It purchased equipment from the \"WUnited States for US$52,000 and recorded in the accounting records at the Canadian equivalent of Cdn$83,200. The correct answer was 'Monerary Unit Principle'. This will cost you 1 mark. h) In March 2011, Ingersoll Antiques received mesa customer's order that would not be \"m" required until May 2011. The revenue should be recorded in May 2011. The correct answer was 'Revenue Recognition Principle'. This will cost you 1 mark ' Revenues are recorded when they are Monetary 3,2,, earned, regardless of when cash is received. The correct answer was 'Revenue Recognition Principle'. This will oust you 1 mark. :0 The theory that each business records and reports its nancial activities in terms of Monetary gym, the national monetary unit of its country, such as dollars, yens, or euros, is the denition for which principle? ' NorthCo applied for a $150,000 bank loan. The bank received the business's financial b+anmnn+o 'Frnm can innnnnrlan'i' . ,_J g e