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:

Unprecedented Rate

A speed or pace of change that has never been encountered before, often used to describe rapid technological, environmental, or societal shifts.

Compound Sentence

A sentence type that includes at least two independent clauses, typically connected by conjunctions.

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The adherence to rules and principles of syntax, punctuation, and spelling in written language.

Credibility

The perceived trustworthiness or believability of a source or message.