Joshua Thomas Corporation Manufactures and Retails Computer Hardware

question 113

Multiple Choice

Joshua Thomas Corporation manufactures and retails computer hardware.The president of the corporation bought a new car as a gift for his daughter and paid for it using cash from the business.Since the corporation paid for the car,it was recorded in its books as an asset.Which of the following concepts or principles of accounting did the corporation violate?

• A)monetary unit assumption
• B)economic entity assumption
• C)cost principle
• D)going concern assumption

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Definitions:

Fifth Amendment

An amendment to the U.S. Constitution that protects individuals against self-incrimination, ensures due process of law, and provides other protections against government abuses.

Self-Incrimination

The act of implicating oneself in a crime, which is protected against by the Fifth Amendment in the United States Constitution.

Defense of Others

A legal justification for using reasonable force to protect another person from harm or danger.

Deadly Force

The use of force that is likely to result in serious bodily harm or death, often discussed in law enforcement and self-defense contexts.