Question
Wilson & Co. owns land which has cost it $100,000. If a quick sale of the land were necessary to generate cash, the Co. feels
Wilson & Co. owns land which has cost it $100,000. If a "quick sale" of the land were necessary to generate cash, the Co. feels it would receive only $80,000. The Co. continues to report the asset on the balance sheet at $100,000. Under which of the following concepts is it justified?
The historical-cost principle
The objectivity principle.
Neither of the above.
Both "a" and "b".
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
