Professional Documents
Culture Documents
INDANGAN
Financial Accounting and Reporting 1 (FAR1)
Prelim
Test 3: Enumeration
1. Going Concern Assumption
Situation: The equipment is recorded at the amount for which it could be sold at
short notice.
4. Monetary Unit
Situation: The currency used in the financial statements of ABC Company, a domestic
company, is dollar.
5. Historical Cost Concept
Situation: The entity record the purchased of an equipment at fair market value
wherein its original price is ten percent lower its fair value.
8. Matching Principle
Situation: The finance staff do not have a matching expense recognition entry with
regards to the revenue recorded.
9. Consistency
Situation: Every year the entity changes its depreciation method.