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TiliK225 [7]
3 years ago
8

Lisa Smith decided to start her CPA practice as a professional​ corporation, Smith​ CPA, PC. The corporation purchased an office

building for​ $35,000. The real estate agent said the building was worth​ $50,000 in the current market. The corporation recorded the building as a​ $50,000 asset because Lisa believes that is the real value of the building. Which of the following concepts or principles of accounting is being​ violated? A) cost principle
B) economic entity assumption
C) monetary unit assumption
D) going concern assumption
Business
1 answer:
NeTakaya3 years ago
4 0

Answer:

A) cost principle

Explanation:

Cost Principle is a fundamental guideline in accounting. It states that assets should be recorded in it's cash amount or it's equivalent at the time of purchase. In this scenario, the corporation(Smith CPA, PC) ignored this fundamental principle and decided on a figure which didn't reflect the value paid for.

$35,000 is the cash value and should be recorded as the vlue of the building.  

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7 0
1 year ago
What is the primary responsibility of oversight bodies (such as an irb or iacuc)?
mojhsa [17]

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3 0
1 year ago
In light of persistent ____________, growing ____________ and the tendency by some firms and industries to seek legislative redr
Vinil7 [7]

Answer:

The answer is:

Trade deficit;

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Restrict.

Explanation:

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3 0
3 years ago
Two items are omitted from each of the following three lists of cost of goods sold data from a manufacturing company income stat
WARRIOR [948]

Answer;

Cost of goods manufactured =  Cost of finished goods available for sale - Beginning inventory of finished goods.

Cost of goods sold = Cost of finished goods available for sale - Ending finished goods

a. Cost of goods manufactured =  Cost of finished goods available for sale - Beginning inventory of finished goods.

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a = 331,000 + 64,900

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e = 103,400 - 65,800

= $37,600

f. Cost of goods sold = Cost of finished goods available for sale - Ending finished goods

- missing figure (ending finished goods).

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C is the correct answer because it really varies depending on the game.

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