A. General accounting principle B. Measurement (cost) principle C. Business entity assumption D. Revenue recognition principle E. Expense recognition (matching) principle F. Going-concern assumption
A. General accounting principle B. Measurement (cost) principle C. Business entity assumption D. Revenue recognition principle E. Expense recognition (matching) principle F. Going-concern assumption
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Identify the letter for the principle or assumption from A through F in the blank space next to situation that it best explains or justifies: _________In December of this year, Chavez Landscaping received a customer’s order and cash prepayment to install sod at a house that would not be ready for installation until March of next year. Chavez should record the revenue from the customer order in March of next year, not in December of this year.
Transcribed Image Text:A. General accounting principle
B. Measurement (cost) principle
C. Business entity assumption
D. Revenue recognition principle
E. Expense recognition (matching) principle
F. Going-concern assumption
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