TRUE OR FALSE:
___ The most common point of revenue recognition is when thegoods or services are transferred or provided to the seller. (Ondelivery).
___ A change in the inventory accounting method would violatethe principle of consistency.
___ When transactions occur, we must decide when to recognizethe transactions in the financial statements and how to measurethem. The principles of recognition and measurement are:Objectivity, Recognition of Income, Principle of Congruence(Matching) and Consistency.
___ Inflation changes the purchasing power of monetary units, ifinflation is material, the stable dollar hypothesis is valid.
___ The purpose of accounting theory is to provide a coherentand general framework for assessing accounting practices so thatthey can guide the development of new practices and procedures.
___ A cash deposit at a bank or similar financial institution isa financial liability because it represents, for the depositor, acontractual right to obtain cash from the entity, to write a checkagainst the balance of the same in favor of a creditor in paymentof an asset financial.