statement of financial position of the company. It was reported at that amount 1. George bought a racing car and as an owner and a manager of his own company, Directions. Indicate which accounting principle is violated. Choosc your answers from Business entity Accrual accounting Accrual Time Period Time period Going Concern Business Entity Materiality Cost Matching while all the other assets were reported in Philippine peso. that he is going to prepare the statements. position of the shoe store. 5 A saw was bought by Mike Pacardo costing Php 1,000.00 and it was recorded as an asset. immediately 6. A shoe factory needed a machine for fast production, so they ordered it. Upon orden the machine was immediately listed as one of its assets. 7. Jenny has a sari-sari store. Whenever she and her family do not have anything to eat, she will get food from her sari-sari store without paying for it. 8. Mr. Sanchez has a kimchi business which he believes will only operate for two years because of lack of customers. 9. Ms. Tabugan is an accountant in JYP Bookstore and she prepares financial statements only whenever she wants. 10. Apple Salon performs a hair treatment on Mrs. Valdez on account (without payment) but Apple, the owner, did not record the service revenue. 30
statement of financial position of the company. It was reported at that amount 1. George bought a racing car and as an owner and a manager of his own company, Directions. Indicate which accounting principle is violated. Choosc your answers from Business entity Accrual accounting Accrual Time Period Time period Going Concern Business Entity Materiality Cost Matching while all the other assets were reported in Philippine peso. that he is going to prepare the statements. position of the shoe store. 5 A saw was bought by Mike Pacardo costing Php 1,000.00 and it was recorded as an asset. immediately 6. A shoe factory needed a machine for fast production, so they ordered it. Upon orden the machine was immediately listed as one of its assets. 7. Jenny has a sari-sari store. Whenever she and her family do not have anything to eat, she will get food from her sari-sari store without paying for it. 8. Mr. Sanchez has a kimchi business which he believes will only operate for two years because of lack of customers. 9. Ms. Tabugan is an accountant in JYP Bookstore and she prepares financial statements only whenever she wants. 10. Apple Salon performs a hair treatment on Mrs. Valdez on account (without payment) but Apple, the owner, did not record the service revenue. 30
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
What accounting principle is this
Transcribed Image Text:statement of financial position of the company. It was reported at that amount
1. George bought a racing car and as an owner and a manager of his own company,
Directions. Indicate which accounting principle is violated. Choosc your answers from
Business entity
Accrual accounting
Accrual
Time Period
Time period
Going Concern
Business Entity
Materiality
Cost
Matching
while all the other assets were reported in Philippine peso.
that he is going to prepare the statements.
position of the shoe store.
recorded as an asset.
6. A shoe factory needed a machine for fast production, so they ordered it. Upon orde
the machine was immediately listed as one of its assets.
7. Jenny has a sari-sari store. Whenever she and her family do not have anything to
eat, she will get food from her sari-sari store without paying for it.
8. Mr. Sanchez has a kimchi business which he believes will only operate for two years
because of lack of customers.
9. Ms. Tabugan is an accountant in JYP Bookstore and she prepares financial
statements only whenever she wants.
10. Apple Salon performs a hair treatment on Mrs. Valdez on account (without
payment) but Apple, the owner, did not record the service revenue.
30
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