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:

Functional Prerequisite

Essential conditions or requirements that systems (e.g., social, biological) need to meet in order to survive and maintain stability.

Disruptive Behaviors

Behaviors that interrupt or negatively impact the normal flow of activities or environment, often viewed in contexts like classrooms or workplaces.

Structural Functionalism

An approach within sociology that considers society to be a sophisticated system with various elements cooperating to ensure unity and maintain balance.

Abstract Societies

These are theoretical societies used in sociological research to analyze social behaviors and structures beyond specific cultural and historical contexts.