Homework.aspx?homeworkld$=673183458$&questionld$=1$&flushed$=$false&cld$=7821177$erwin$=$yes

Walker Martin

$06/05/245$:$08$ ?PM

mework

Question $4,$ ?SF$1-5($book$/$static$)$

HW Score: $22\mathrm{.}34\%,2\mathrm{.}9$ ?of $13$ ?points

Part $1$ ?of $4$

Points: $0$ ?of $1$

Michael McNamee is the proprietor of a property management company, Apartment Exchange, near the campus of Penscola State College. The business has cash of $$8,000$ ?and furniture that cost $$9,000$ ?and has a market value of $$13,000.$ ?The business debts include accounts payable of $$6,000.$ ?Michael's personal home is valued at $$400,000,$ ?and his personal bank account has a balance of $$1,200.$ ?Identify the principle or assumption that best matches the situation:

a$.$ ?Michael's personal assets are not recorded on the Apartment Exchange's balance sheet.

b$.$ ?The Apartment Exchange records furniture at its cost of $$9,000,$ ?not its market value of $$13,000.$

c$.$ ?The Apartment Exchange reports its financial statements in U$.$S$.$ ?dollars.

d$.$ ?Michael expects the Apartment Exchange to remain in operations for the foreseeable future.

a$.$ ?Michael's personal assets are not recorded on the company's balance sheet: