Accouting principle breached?

[hello_kitty]

1 State and explain the Accounting Principle that has been applied or breached in the following situations.

a) Stock is shown in accounting records in quantity amounts.

Would this be Monetary unit? but im not sure why??

b)Payments are made and recorded without supporting evidence, such as invoices or cheque butts.

Historical cost?? but again not sure why :/

thanks!

[Hodgeyhodgey]

First one is monetary unit because all items must be recorded in the currency of the business's location. The value amount is recorded because this is used to determine financial performance and such and simply stating the quantity tells us nothing.

Although it's a qualitative characteristic, the second situation to me is reliability because every transaction needs physical evidence of it's occurrence, not sure if any principles apply to that sort of situation.

Sorry if these answers aren't up to scratch, just got home from work and they're off the top of my head    

[eeps]

A) Monetary Unit is generally in dollar terms ($). That should answer your question.

B) It's a breach of the Historical Cost principle, as there is no evidence to support the transaction (i.e. payments). No reliable proof that can be checked against. This breaches the Historical Cost principle which states that there should be evidence in the form of source documents (i.e. Cheque butts, Credit notes (Unit 4), Tax invoices etc) as evidence that a financial transaction has occurred.