Match the appropriate accounting assumption or principle that is most applicable to each of the following...

 

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Match the appropriate accounting assumption or principle that is most applicable to each of the following cases: Prepayment for an annual license is allocated equally to expense over the next 12 months for ABC Inc. Inventories at Sparky Mercantile are valued at lower of cost or net realizable value Although the inflation rate for the most recent fiscal year of Desert Auto was 6%, no adjustment was made on the year-end statements Anderson owns a restaurant and a dry cleaning service. Separate financial statements are prepared for each business [Choose ] [Choose ] [Choose ] ✓ [Choose ] Measurement Principle Expense Recognition Periodicity Assumption Economic Entity Assumption > Match the appropriate accounting assumption or principle that is most applicable to each of the following cases: Prepayment for an annual license is allocated equally to expense over the next 12 months for ABC Inc. Inventories at Sparky Mercantile are valued at lower of cost or net realizable value Although the inflation rate for the most recent fiscal year of Desert Auto was 6%, no adjustment was made on the year-end statements Anderson owns a restaurant and a dry cleaning service. Separate financial statements are prepared for each business [Choose ] [Choose ] [Choose ] ✓ [Choose ] Measurement Principle Expense Recognition Periodicity Assumption Economic Entity Assumption >

Answer rating: 100% (QA)

Srno 1 2 3 4 Cases Prepayment of annual license is allocated to expense over the next 12 m... View the full answer