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Question 12. Question :
The principle that (1) requires
revenue to be recognized at the time it is earned, (2) allows the
inflow of assets associated with revenue to be in a form other
than cash and (3) measures the amount of revenue as the cash
plus the cash equivalent value of any non-cash assets received
from customers in exchange for goods or services is called the:
Going-concern principle
Cost principle
Revenue recognition principle
Objectivity principle
Business entity principle

Question 13. Question :
Which of the following is the
primary purpose of accounting?
To establish a business
To identify, record and communicate
business transactions
To deceive stockholders
To keep from paying taxes
To establish credit for a company