1. Explain the following concepts of the Generally Accepted Accounting Principles (GAAP)

A· Monetary denominator

B· Objective evidence and cost convention

C· Conservatism

D· The accrual concept

2. Linda goes to a store and buys a 60”HD television. Jennifer hires a company to clean her swimming pool once a week. The ________ governs Linda’s contract with the store and the ________ governs Jennifer’s contract with the pool cleaning company?

A. Common law: common law

B. Common law; UCC

C. UCC; common law

D. UCC; UCC

3. Angela makes a material misstatement of fact to Frances, which she relies on when she signs Angela’s contract. Fraud exists if Angela made the misstatement__________________

A. Intentionally

B. Recklessly

C. Carelessly

D. Both A & B

E. A & and B & C