QUESTION 24

The recognition of cost of goods sold expense in the same period that sales revenue is recognized from the sale of merchandise is a good example of the

		historical cost principle.
		revenue realization principle.
		expense recognition principle.
		full disclosure principle.

QUESTION 25

Entity F paid its landlord rent of $7,000 per month for 8 months ($56,000) in advance on December 1, 2022. If Entity Fs accounting period ends on December 31, 2022, it will report

		Rent Revenue of $7,000 on its 2022 income statement.
		Prepaid Rent of $49,000 on its 2022 balance sheet.
		Prepaid Rent of $7,000 on its 2022 balance sheet.
		Rent Expense of $49,000 on its 2022 income statement.

QUESTION 26

The periodicity assumption is required because

		inflation exists.
		the dollar is the monetary unit of the United States.
		we should choose the accounting method least likely to overstate assets or income, or understate liabilities.
		users demand information about the entity on a regular basis.