Complete question:
Identify the account concept,assumption, or principal that best applies to each of the following situations:
Burger King, the restaurant chain, sold a store location to McDonald's. How can Burger King determine the sale price of the store - by a professional appraisal, Burger King cost, or the amount actually received from the sale?
Answer:
Historical cost principle
Explanation:
The initial nominal financial value of the commodity is the average expense of a commercial object. The cost estimate is traditionally focused on recording assets at their nominal expense, which are not adjusted to adjust the costs of the products.
The original nominal financial value of the commodity is the average expense of a commercial object. The cost estimate is traditionally focused on recording assets at their nominal expense, which are not adjusted to adjust the costs of the products.
