Directions. Indicate which accounting principle is violated. Choose your answers from the box. Write your answers on a separate sheet of paper. Accrual accoùnting Business entity Time Period Аccrual Time period Going Concern Business Entity Cost Materiality Matching 1. George bought a racing car and as an owner and a manager of his own company he gave the receipt to the accountant who recorded it as an asset of the business 2. A machine was purchased from Japan for 350,000 Yen and it was shown in the statement of financial position of the company. It was reported at that amount while all the other assets were reported in Philippine peso. 3. Henry Wong has no plan of preparing financial statements for his business. He has a prediction that his business will be closed after 20 years and that is the only time that he is going to prepare the statements. 4. Roger has a shoe store and operates a canteen. The statement of financial position shows that the assets of the canteen arc reported in the statement of financial position of the shoe store. 5. A saw was bought by Mike Pacardo costing Php 1,000.00 and it was immediately recorded as an asset.
Directions. Indicate which accounting principle is violated. Choose your answers from the box. Write your answers on a separate sheet of paper. Accrual accoùnting Business entity Time Period Аccrual Time period Going Concern Business Entity Cost Materiality Matching 1. George bought a racing car and as an owner and a manager of his own company he gave the receipt to the accountant who recorded it as an asset of the business 2. A machine was purchased from Japan for 350,000 Yen and it was shown in the statement of financial position of the company. It was reported at that amount while all the other assets were reported in Philippine peso. 3. Henry Wong has no plan of preparing financial statements for his business. He has a prediction that his business will be closed after 20 years and that is the only time that he is going to prepare the statements. 4. Roger has a shoe store and operates a canteen. The statement of financial position shows that the assets of the canteen arc reported in the statement of financial position of the shoe store. 5. A saw was bought by Mike Pacardo costing Php 1,000.00 and it was immediately recorded as an asset.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Directions: Indicate which accounting principle is violated. Choose your answers from
the box. Write your answers on a separate sheet of paper.
Accrual accoùnting
Business entity
Time Period
Аccrual
Time period
Going Concern
Business Entity
Cost
Materiality
Matching
1. George bought a racing car and as an owner and a manager of his own company
he gave the receipt to the accountant who recorded it as an asset of the business
2. A machine was purchased from Japan for 350,000 Yen and it was shown in the
statement of financial position of the company. It was reported at that amount
while all the other assets were reported in Philippine peso.
3. Henry Wong has no plan of preparing financial statements for his business. He has
a prediction that his business will be closed after 20 years and that is the only time
that he is going to prepare the statements.
4. Roger has a shoe store and operates a canteen. The statement of financial position
shows that the assets of the canteen arc reported in the statement of financial
position of the shoe store.
5. A saw was bought by Mike Pacardo costing Php 1,000.00 and it was immediately
recorded as an asset.
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