Yellow Pencil Company pays Helen, a staff accountant, a $10,000 a month salary. How should the salary be recognized as an expense?

A.

Matched with revenue earned by the Yellow Pencil Company

B.

Systematically allocated with the use of the pencil making machinery of the Yellow Pencil Company factory

C.

Recorded as a measure of the effort expended by the staff accountant in the periods in which she works

D.

Upon the sale of pencils and in proportion to those sales

2.

Preparation of consolidated financial statements when a

parentminussubsidiary

relationship exists is an example of the ________.

A.

common sense assumption

B.

economic entity concept

C.

monetary unit assumption

D.

periodicity assumption