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Lisa Smith decided to start her CPA practice as a sole proprietorship. The business purchased an office building for $35,000. The real estate agent said
Lisa Smith decided to start her CPA practice as a sole proprietorship. The business purchased an office building for $35,000. The real estate agent said the building was worth $50,000 in the current market. The business recorded the building as a $50,000 asset because Lisa believes that is the real value of the building. Which of the following concepts or principles of accounting is being violated? O A. monetary unit assumption B. economic entity assumption OC. cost principle OD. going concern assumption
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