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Nataly_w [17]
3 years ago
12

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

uilding 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? Select one: A. economic entity assumption B. cost principle C. monetary unit assumption D. going concern assumption
Business
1 answer:
Over [174]3 years ago
4 0

Answer:

B. Historical cost principle

Explanation:

In accounting, historical cost principle indicates that a business or an organization must record and account for both assets and liabilities at their purchase or buying price. In points that during bookkeeping, while recording the worth of an assets, the purchase price used in buying it must be recorded. Here, Lisa bought the building for $35000 but recorded $50000 because she believes that to be the real value. By doing so, lisa has violated the historical cost principle concept.

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In his fourth-grade class, Mr. Gold is incorporating a play about Benjamin and Deborah Franklin into the study of the history of
GuDViN [60]

The first step in organizing production is planning the process and developing the project budget and schedule, such as rehearsals and performance review.

<h3 /><h3>What is project planning?</h3>

It corresponds to practices that are implemented at the beginning of the project, which will help achieve the objectives, that is, they are actions that direct the management and structure the details of the project.

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7 0
2 years ago
Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit:chair). The selling prices
Doss [256]

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the selling price per composite unit:</u>

<u></u>

selling price per composite unit= 1,280*0.6 + 530*0.4

selling price per composite unit= $980

<u>Now, the unitary variable cost per composite unit:</u>

Variable cost per composite unit= 780*0.6 + 280*0.4

Variable cost per composite unit= $580

<u>To calculate the break-even point in units, we need to use the following formula:</u>

Break-even point in units= fixed costs/ contribution margin per composite unit

Break-even point in units= 150,000 / (980 - 580)

Break-even point in units= 375

<u>Finally, the number of units per product:</u>

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4 0
3 years ago
Larry Nelson holds 1,000 shares of General Electric (GE) common stock.
Anna35 [415]

Answer:

$82,000

Explanation:

The computation of the current investment is shown below:

Current investment = Number of shares of common stock × price per share

= 2,000 shares × $41 per share

= $82,000

By multiplying the number of shares of common stock with the price per share we can get the current investment in the company

All other information which is given is not relevant. Hence, ignored it

8 0
3 years ago
How will the Senator's plan spur economic growth? A) The business community will support the plan. B) Using tax breaks will allo
Mademuasel [1]
Business will be able to save the money they will recieve back from taxes.
5 0
3 years ago
Read 2 more answers
Benjamin Graham, the father of value investing, once said, "In the short run, the market is a voting machine, but in the long ru
Ber [7]

Answer:

1- a. A stock's intrinsic value is based on true investor return.

2- a. Most investors prefer companies that can rise prices beyond reasonable levels.

b. Successful companies can avoid raising external funds in the financial markets.

Explanation:

Intrinsic value of a company's stock is the real value of stock which is based on systematic factors affecting the company. The factors affecting the intrinsic value of company are usually internal factors. The performance of company management, employee satisfaction and its operational efficiencies are the factor which drive intrinsic value of a company.

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3 years ago
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