TRUE OR FALSE:

___ The most common point of revenue recognition is when the goods or services are transferred or provided to the seller. (On delivery).

___ A change in the inventory accounting method would violate the principle of consistency.

___ When transactions occur, we must decide when to recognize the transactions in the financial statements and how to measure them. The principles of recognition and measurement are: Objectivity, Recognition of Income, Principle of Congruence (Matching) and Consistency.

___ Inflation changes the purchasing power of monetary units, if inflation is material, the stable dollar hypothesis is valid.

___ The purpose of accounting theory is to provide a coherent and general framework for assessing accounting practices so that they can guide the development of new practices and procedures.

___ A cash deposit at a bank or similar financial institution is a financial liability because it represents, for the depositor, a contractual right to obtain cash from the entity, to write a check against the balance of the same in favor of a creditor in payment of an asset financial.