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Problem 1. Which of the following transactions will not result in the recognition or dn expense?
a. A cash withdrawal by the owner. A cash withdrawal by the owner will not result in the recognition of an expense.
b. a deferred revenue.
b. Expiration of prepaid insurance.
C. Interest accrued on a bank loan.
d. Use of machinery during the period.
Problem 2. The accountant may spread the cost of a building over many years primarily because of the
a. fiscal year assumption.
b. going concern assumption.
C. periodicity assumption.
d. periodicity assumption and going concern assumption.
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