Which of the Following Is Allowed Under Generally Accepted Accounting

question 35

Multiple Choice

Which of the following is allowed under generally accepted accounting principles?

• A) A company was offered $60,000 for land that it had purchased for $15,000.The company did not sell the land but increased the Land account to $60,000.
• B) An owner lists the full cost of his or her personal automobile,which is occasionally used for business purposes,on the company's balance sheet.
• C) A large company recorded the $20 cost of a tool as an expense,although the item is expected to be used for 3 years.
• D) The Equipment account shows a balance of $55,000.This amount represents the original cost of $75,000 less the accumulated depreciation of $20,000.

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Definitions:

Satisfaction

The contentment or fulfillment a consumer feels after purchasing and using a product or service.

Purposeful Behavior

Actions taken by individuals or entities aimed at achieving specific goals or outcomes, based on rational decision-making processes.

Desired Outcomes

Refers to the specific goals or results that an individual or organization aims to achieve.

Resource Availability

The extent to which necessary resources, such as materials, labor, and capital, are accessible for the production process or project execution.