Mathew Owns an Art Supplies Store

question 94

Multiple Choice

Mathew owns an art supplies store. In the initial accounting records, he included his personal computer and all of his personal art supplies. Mathew is violating what principle of accounting?

• A) Going concern
• B) Cost
• C) Reliability
• D) Economic entity
• E) Materiality

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Definitions:

Certainty Of Payment

The assurance or guarantee that payment will be made, often a crucial consideration in financial transactions and agreements.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.

Stop Payment

A stop payment is a request made to a financial institution to cancel the processing of a check or payment transaction before it has been finalized.

Bills Of Exchange Act

Legislation governing the creation, transfer, and payment of bills of exchange, a type of negotiable instrument.