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Sergeeva-Olga [200]
2 years ago
7

Tate Corporation purchased a building for its grocery store for $30,000 in 1970.Based on inflation estimates,the amount of this

asset has been adjusted in the accounting records.The building is now reported at $75,000.Which of the following concepts or principles of accounting is being violated?
A) Going-concern concept
B) Stable monetary unit concept
C) Entity concept
D) None of the above
Business
1 answer:
Alex777 [14]2 years ago
7 0

Answer:

B) Stable monetary unit concept

Explanation:

Based on the information given the concepts or principles of accounting that was being violated is called STABLE MONETARY UNIT CONCEPT reason been that this type of accounting principle believe that the dollar purchasing power should often be stable or fixed regardless of the increase or rise in market price which is inflation which is why an accountant will often ignore the impact of inflation on goods and services based on the assumption of the principle of STABLE MONETARY UNIT CONCEPT.

Therefore Tate corporation has violated the accounting principle of STABLE MONETARY UNIT CONCEPT by adjusting the building amount that was purchase in 1970 in the Accounting record from the amount of $30,000 to the amount of $75,000 due to the effect of inflation.

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Answer:

a. Face saving

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Face saving involves actions or in-actions that seek to prevent one from getting embarrassed or losing social status. They are attempts to upholds one's dignity by quickly correcting a mistake or remedying poor perception.

Bright Inc., are behaving in a dignified manner to avoid loss or reputation in the eyes of the customer. They need to maintain a respectful relationship with the customer for business continuation. The actions of Bright Inc. are face-saving as they aim at salvaging its business image after failing to deliver as expected.

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Given that

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