Question
This year Burnham Trucking Compay told their CPA they had purchased a $12,000 trailer but only has receipts of $10,000. Burnham has stated that they
This year Burnham Trucking Compay told their CPA they had purchased a $12,000 trailer but only has receipts of $10,000. Burnham has stated that they "know" what the the true value of the trailer should be, even though the receipt provided is closer to the purchase price of other trailers purchased in the same city/area. Acceptance by the CPA's of the asset cost as the higher figure of $12,000 and the asset's presentation in the financial statements as $12,000 would be...
A. | ...no problem at all. | |
B. | None of the other answers | |
C. | ... a violation of the cost principle. | |
D. | ... a violation of the revenue recognition principle. | |
E. | ...a violation of the matching principle. |
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