Recording Land at Its Cost Rather Than Its Appraisal Value

question 50

Multiple Choice

Recording land at its cost rather than its appraisal value illustrates

• A) the full disclosure principle.
• B) the cost basis principle.
• C) the realization principle.
• D) the matching principle.

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Definitions:

Cadillac

A luxury vehicle brand known for its high level of craftsmanship, comfort, and prestige.

Quantum Meruit

A legal principle where a person is paid for the value of the services provided, even in the absence of a contract, based on the reasonable value of services rendered.

Breaching Party

The entity or individual who fails to comply with the terms of a contract, thereby causing a breach.

Creditor

An individual, corporation, or other entity that is owed money by another entity, known as the debtor.