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Business, 18.02.2020 02:07 stressedstudent1906
Michael McNamee is the proprietor of a property management company, Apartment Exchange, near the campus of Pensacola State College. The business has cash of $8,000 and furniture that cost $9,000 and has a market value of $13,000. The business debts include accounts payable of $6,000. Michael’s personal home is valued at $400,000, and his personal bank account has a balance of $1,200. Consider the accounting principles and assumptions discussed in the chapter, and identify the principle or assumption that best matches the situation:a. Michael’s personal assets are not recorded on the Apartment Exchange’s balance sheet. b. The Apartment Exchange records furniture at its cost of $9,000, not its market value of $13,000.c. The Apartment Exchange reports its nancial statements in U. S. dollars. d. Michael expects the Apartment Exchange to remain in operation for the foreseeable future.
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Michael McNamee is the proprietor of a property management company, Apartment Exchange, near the cam...
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