24.

(12 points) Presented below are the basic assumptions and principles underlying financial statements.

a. Cost principle	d. Going concern assumption
b. Economic entity assumption	e. Monetary unit assumption
c. Full disclosure principle	f. Time period assumption

Identify the basic assumption or principle that is described below.

_____ 1.	Assets should be recorded at cost.
_____ 2.	Economic events can be identified with a particular unit of accountability.
_____ 3.	The economic life of a business can be divided into artificial time periods.
_____ 4.	The business will continue in operation for the foreseeable future.
_____ 5.	Circumstances and events that make a difference to financial statement users should be disclosed.
_____ 6.	Only transaction data that can be expressed in terms of money should be included in the accounting records.

25.

(10 points) The following lettered items represent a classification scheme for a balance sheet, and the numbered items represent data found on balance sheets. In the blank next to each account, write the letter indicating to which category it belongs.

A.	Current assets
B.	Investments
C.	Property, plant, and equipment
D.	Intangible assets
E.	Current liabilities
F.	Long-term liabilities
G.	Stockholders' equity
H.	Not on the balance sheet

_____	1. Salary Payable	_____	6. Retained Earnings
_____	2. Inventory	_____	7. Patents
_____	3. Common Stock	_____	8. Prepaid Interest
_____	4. Interest Expense	_____	9. Long-term debt
_____	5. Accumulated depreciation	_____	10. Land Held for Investment