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Question 1: In each of the following situations, state and explain the accounting principle that has been breached.
a) Rhonda recorded the payment of her daughter's orthodontist's fees as a business expense
b) The proprietor of Richmond Spare Parts decided to combine the recording of repair expenses with vehicle expenses after recording them separately for several years.
c) Due to uncertainties with the exchange rate, Dig Freely decided to record foreign earnings in yuan (the Chinese currency).
d) During January 2015, Jean Simons received cash for goods sold in December 2014. Jean decided to record the cash as revenue for 2015.
Financial Statement Analysis and Preparation
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