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Recently,two friends in Australia combined their monetary resources and formed a business.Regardless of the form of the business,at the time of the purchase via cash,an asset is recorded in the accounting records by both increasing the account for the asset purchased and decreasing the account for cash by the same amount because of the: A.Asset Recognition Principle B.Historical Cost Principle C.Dual effect of transactions D.Entity Concept E.Monetary Unit Concept

Recently,two friends in Australia combined their monetary resources and formed a business.Regardless of the form of the business,at the time of the purchase via cash,an asset is recorded in the accounting records by both increasing the account for the asset purchased and decreasing the account for cash by the same amount because of the: A.Asset Recognition Principle B.Historical Cost Principle C.Dual effect of transactions D.Entity Concept E.Monetary Unit Concept

Financial Reporting, Financial Statement Analysis and Valuation
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter9: Operating Activities
Section: Chapter Questions
Problem 2HIC
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Recently,two friends in Australia combined their monetary resources and formed a business.Regardless of the form of the business,at the time of the purchase via cash,an asset is recorded in the accounting records by both increasing the account for the asset purchased and decreasing the account for cash by the same amount because of the:

A.Asset Recognition Principle

B.Historical Cost Principle

C.Dual effect of transactions

D.Entity Concept

E.Monetary Unit Concept

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