Ask Question
BusinessBusiness
22 April, 22:34

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

+4
Answers (1)
  1. 23 April, 00:59
    0
    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.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “You decide to start your own business as a professional corporation. You purchase an office building for $35,000 from your mother even ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
At the beginning of the year, manufacturing overhead for the year was estimated to be $745,500. At the end of the year, actual direct labor-hours for the year were 36,240 hours, the actual manufacturing overhead for the year was $730,000, and
Answers (1)
Hakeem owns shares worth $4,000 dollars in a textile firm. Having a stake in the company, he has the right to vote, the right to receive return on investment in the form of capital gain, and the right to residual claim on assets. Hakeem is a (n) :
Answers (1)
Assume that Canadian consumers increase their demand for Mexican financial assets How would the international supply of Canadian dollars, the value of the Mexican peso relative to the Canadian dollar, and Canadian net exports to Mexico change?
Answers (1)
Mechem Corporation produces and sells a single product. In April, the company sold 2,000 units. Its total sales were $163,000, its total variable expenses were $80,900, and its total fixed expenses were $57,800. Required: a. Construt. a.
Answers (1)
Joshua Thomas Corporation manufactures and retails computer hardware. The president of the corporation bought a new car as a gift for his daughter and paid for it using cash from the business.
Answers (1)
New Questions in Business
In October 2010, the amount of money held by individuals and companies was $893.4 billion; checkable deposits owned by the same individuals and companies were $345.6 billion; money market funds were $1.9423 trillion; savings deposits were $989.
Answers (2)
A monopolist that practices perfect price discrimination a. creates no deadweight loss. b. charges one group of buyers a higher price than another group, such as offering a student discount. c.
Answers (1)
What is the best way to show a business you're interested in their job position
Answers (1)
It doesnt matter what your goal is. any idea you may create is achievable. true or false
Answers (1)
What is a system for ordering items that have little or no value at the end of a sales period? a. single-period inventory model b. rop c. production order quantity model d. eoq?
Answers (1)
Home » Business » You decide to start your own business as a professional corporation. You purchase an office building for $35,000 from your mother even though your real estate agent said it was worth $500,000 in the current market.
Sign Up Forgot Password?