A company purchased a building twenty years ago for $150,000. The building currently has an appraised market value of $235,000. The company reports the building on its balance sheet at $235,000. What concept or principle has been violated?

a. monetary measurement concept

b. cost principle

c. recognition principle

Which process of the accounting cycle often requires the most analytical thought?

a.making a journal entry

b.posting transactions to accounts

c.summarizing the trial balance

Use the following appropriate amounts to calculate net income: Revenues, $15,000; Liabilities, $5,000; Expenses, $6,000; Assets, $19,000; Dividends, $4,000.

a.$9,000.

b.$4,000.

c.$6,000.