Author Question: Match the accounting principle or assumption that is most applicable to each of the following. Each ... (Read 64 times)

serike · **on:** Jul 5, 2018

Match the accounting principle or assumption that is most applicable to each of the following. Each term should be used only once.

a. monetary-unit assumption
b. historical-cost principle
c. going-concern assumption
d. revenue-recognition principle
e. matching principle

_____ 1. Team Shirts reports assets valued at the original transaction price.
_____ 2. The expenses incurred by Team Shirts in March were subtracted from March revenues to calculate the profit for March.
_____ 3. Team Shirts reports the amounts on its financial statements in dollars.
_____ 4. Team Shirts reports amounts earned even though cash has not yet been collected.
_____ 5. Tom has plans to run Team Shirts indefinitely.

Question 2

When a check is written to replenish the petty cash fund, it is entered in the journal by debiting the proper accounts indicated in the Distributions columns of the petty cash record and by crediting Cash Over and Short.
a. True
b. False
Indicate whether the statement is true or false