Question
ABC Company owns land that cost $25,000. If a quick sale of the land was necessary the generate cash, the company feels it would receive
ABC Company owns land that cost $25,000. If a quick sale of the land was necessary the generate cash, the company feels it would receive only $20,000. The company continues to report the asset on the balance sheet at $25,000. Which of the following concept justifies this?
| A. | Fair value principle | |
| B. | Cost principle | |
| C. | Monetary unit assumption | |
| D. | Economic entity assumption |
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Accounting For Beginners
Authors: Kokab Rahman
1st Edition
149479294X, 978-1494792947
