Question
A company has purchased land in Year 1 for $500,000 and reports the land at the same amount on its Year 30 balance sheet. Which
A company has purchased land in Year 1 for $500,000 and reports the land at the same amount on its Year 30 balance sheet. Which principle of accounting is being illustrated?
a. Reporting entity assumption
b. Conservatism
c. Historical cost principle
d. Matching principle
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
9th edition
1-119-49356-3, 1119493633, 1119493560, 978-1119493631
