Goods and services were exchanged through a BARTER SYSTEM. Barter is a system in which goods and services are exchanged for other goods and services without using any medium of exchange such as money. Reciprocal exchange is often immediate and not delayed.
Answer:
1) expense recognition principle: expenses are recognized when they are consumed.
2) historical cost principle: a company must record its assets, liabilities, and equity investments at their original costs.
3) economic entity principle: the company's transactions should be kept separate from those of its owners or upper management.
Answer:
The Concept of Opportunity Cost
Explanation:
An opportunity cost is the cost associated with choosing to enjoy a particular benefit or pursue a particular venture at the expense of enjoying the benefit of its best alternate choice. In other words, when you enjoy the benefits of action A, the opportunity cost is the potential benefit of action B that one had to give up to achieve action A.
According to the question, money and resources devoted to war on terrorism represents the choice of the nation and the benefits maybe that the country is free from terrorist attacks. However, the opportunity cost is that the benefit of freedom from terrorist attacks comes at the expense of goods that could have been produced if the country should choose to pursue production of goods.
The accounting principle that is being addressed by Leonard would be the full-disclosure principle. This requires a certain company to provide all information that is necessary in making decisions especially in the financial aspect to be able to make sound and informed decisions.<span />
