Question
Sawyer Corporation purchased land in 2009 for $490,000. In 2015, it purchased a nearly identical parcel of land for $660,000. In its 2015 balance sheet,
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Sawyer Corporation purchased land in 2009 for $490,000. In 2015, it purchased a nearly identical parcel of land for $660,000. In its 2015 balance sheet, Sawyer valued these two parcels of land at a combined value of $1,320,000. By reporting the land in this manner, Sawyer Corporation has violated which of the following?
a.Cost principle
b.Going concern assumption
c.Time Period assumption
d.Monetary unit measure
Sawyer Corporation purchased land in 2009 for $490,000. In 2015, it purchased a nearly identical parcel of land for $660,000. In its 2015 balance sheet, Sawyer valued these two parcels of land at a combined value of $1,320,000. By reporting the land in this manner, Sawyer Corporation has violated which of the following?
a.Cost principle
b.Going concern assumption
c.Time Period assumption
d.Monetary unit measure
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Accounting Principles A Business Perspective
Authors: Roger H. Hermanson, James Don Edwards, Michael W. Maher
1st Edition
1680921851, 978-1680921854
