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According to the cost principle, it is preferable for managers to report an estimate of an asset’s value. The monetary unit assumption means that all international transactions must be expressed in dollars. The business entity assumption means that a business is accounted for separately from other business entities, including its owner or owners. As a general rule, revenues should not be recognized in the accounting records until it is received in cash.

General accounting principles arise from long-used accounting practices. Test Bank Fundamental Accounting Principle by Wild A Graded Click on The Link Below to Purchase (Chapter 1 – 25) All Possible Questions With Answers Instant Download more help Contact us at: [email protected] Student: ___________________________________________________________________________ 1. Accounting is an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization’s business activities. Bookkeeping is the recording of transactions and events and is only part of accounting. A sole proprietorship is a business owned by one or more persons. Unlimited liability is an advantage of a sole proprietorship.

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