1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nataliya [291]
3 years ago
9

You decide to start your own business as a professional corporation. You purchase an office building for $35,000 from your mothe

r even though your real estate agent said it was worth $500,000 in the current market. The corporation recorded the building at $500,000. Which of the following concepts or principles of accounting did the corporation violate?
Going concern assumption
money unit assumption
lower of cost of market principle
cost principle
Business
1 answer:
makkiz [27]3 years ago
4 0

Answer:

Cost principle

Explanation:

Cost principle -

It refers to the amount of  the specific object to be recorded during the time of acquiring , is referred to as cost principle .

Cost principle is also called historical cost principle.

During the acquisition , the amount recorded need to be correct , any alteration in the amount leads to the violation of the cost principle.

Similar situation is showcased in the question,

Hence , from the given options the correct option is cost principle.

You might be interested in
Modern Federal Bank is setting up a brand-new branch. The cost of the project will be $1.2 million. The branch will create addit
KonstantinChe [14]

Answer:

23.12%

Explanation:

Internal rate of return (IRR) is the rate at which the Net present value (NPV) of a project equals to zero.

Using a financial calculator and the CF function, input the following to find IRR;

Initial investment; CF0 = -1,200,000

Yr1 cashflow inflow ; C01 = 235,000

Yr2 cashflow inflow ; C02 = 412,300

Yr3 cashflow inflow ; C03 = 665,000

Yr4 cashflow inflow ; C04 = 875,000

Then key in IRR CPT = 23.119%

Therefore, the Internal rate of return this expansion is 23.12%

3 0
3 years ago
Which of the following is a criterion that must be met in order for an item to be recognized as an intangible asset?
Amiraneli [1.4K]

Answer:

The item is identifiable and lacks physical substance.

Explanation:

Intangible asset: Intangible asset is that asset which cannot be seen or even touched. It has no physical existence.

Example: Goodwill, patents, trademarks, copyrights and other intellectual properties

In these types of assets, amortization is charged instead of depreciation.  

It neither used for production, nor its gains any scientific or technical knowledge, and its value neither measure reliability

Hence, option a is correct  

3 0
3 years ago
The demand for most products varies directly with changes in consumer incomes. Such products are known as_________.
Alisiya [41]

Answer:  

Normal goods

               

Explanation:

In simple words, normal goods refers to the goods which re necessary for the survival for the survival for re consumer and the consumer do not take its quality into consideration while making a purchase decision.

The demand for such goods have a positive relationship with the income of consumer, that is, when the income or wages of consumer increase the demand for  such goods also increases and vice versa.

The increase in demand for normal goods by consumer is sometimes also seen as an indicator of an economic growth. Clothes, vegetable and medicines are some of the many examples of normal goods.

3 0
3 years ago
Read 2 more answers
Rosie's flowers company in tulips, ohio, uses an e-commerce software program on its website to allow customers to enter their ow
Anna71 [15]
<span>Rosie's Flowers Company follows a B2C model. This is also known as a business to consumer model. It is when a business has transactions that are directly between the company and the consumers. The consumers are the end users of the products or services.</span>
5 0
3 years ago
A cell phone provider charges felicia $50 per month for her plan plus $0.05 per min of long distance calls.if felicia wants to k
Sunny_sXe [5.5K]
$0.05m + $50>55

0.05 per minute plus $50 per month for the plan less than $55
7 0
3 years ago
Other questions:
  • Making it right the first time is
    9·1 answer
  • Marginal benefit is a gain from an increase or loss from a decrease in the consumption of a good or service. Marginal benefit is
    14·2 answers
  • Why is it difficult to pay off debt and how can debt payments work against consumers?
    15·1 answer
  • Sound Financials Corporation sends daily e-mail ads to its previous customers and those who have opted to receive the notices. I
    6·1 answer
  • On January 2, Dice Co. purchases a mixing machine for $25,500. The machine is expected to last four years and has a salvage valu
    12·1 answer
  • In 2019, Martin had two employers during the year. Both employers withheld Social Security tax from his wages in the amounts of
    12·2 answers
  • When an interviewer says, “Tell me about yourself,” you should feel free to talk openly about your personal life.
    8·2 answers
  • Who is the president's chief adviser on intelligence matters across the executive branch?
    14·1 answer
  • Suppose that an Exxon Mobil bond has a return of ​% half the time and ​% the other half. The expected return on this bond is   
    12·1 answer
  • choose the correct term for each of the following descriptions. expenditure on research and development
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!