Recently,two friends in Australia combined their monetary resoures and formed a business.Regardless of the form of the business,at the time of purchase,an asset is recorded in the accounting records of the business in Australian dollars for each asset,because of the: A.Monetary Unit Concept B.Dual effect of transactions C.Historical Cost Principle D.Entity Concept E.Asset Recognition Principle

Recently,two friends in Australia combined their monetary resoures and formed a business.Regardless of the form of the business,at the time of purchase,an asset is recorded in the accounting records of the business in Australian dollars for each asset,because of the: A.Monetary Unit Concept B.Dual effect of transactions C.Historical Cost Principle D.Entity Concept E.Asset Recognition Principle

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter12: Nonrecognition Transactions

Section: Chapter Questions

Problem 19P

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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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