12. The following assumptions underlying the conceptual framework of the Generally Accepted Accounting Principles (GAAP) is true EXCEPT, * (1 Point) A business is considered a separate legal entity, therefore its financial statements are prepared insuch ways that are separate from the assets, liabilities, income, or expenses of the owners. The historical cost assumption requires that the long-lived assets be recorded at their fair marketvalues such as the fair market value of a premise on a highly demanded commercial lot. The historical cost assumption provides that only assets with reasonably determinable and faithfullyrepresented price paid for an asset can be recorded as the purchase price of the asset. The going concern concept requires businesses to value their supplies at cost for items bearing thebusiness logos and the company's name. A buyer following the historical cost accounting should record the price of a piece of land which hepaid instead of the price of the initial or the counter-offer. 13. During March, $36,600 was paid to creditors on account and purchases on account were $68,000. Assuming the March 31 balance of accounts Payable was $52,000, what is the account balance on March 1? * (1 Point) $52,600 $156,600 $20,600 $83,400 $52,000