Which Concept Should Be Applied When Reporting a Piece of Land

question 114

Multiple Choice

Which concept should be applied when reporting a piece of land that was bought for $50,000 five years ago,and which would probably now sell for $80,000?

• A)The cost principle
• B)Conservatism
• C)The separate entity concept
• D)The monetary concept

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Definitions:

Compromising

A conflict resolution strategy where each party gives up something of value to reach an agreement.

Closure and Implementation

The process of concluding tasks or projects and putting decided plans or policies into action.

Closing and Implementing

The final phase in a project or plan where actions are concluded and the strategies or policies are put into operation.

Loaded Question

A question that contains a controversial or unjustified assumption, often making it difficult to answer directly without implying something unintended.