Ten Years After a Company Purchases a Plot of Land

question 42

Multiple Choice

Ten years after a company purchases a plot of land, it is reported on the balance sheet at its cost from the year it was purchased instead of its current selling price. This accounting practice is justified by the:

• A)financial period assumption.
• B)going concern assumption.
• C)fiscal period assumption.
• D)original cost base.

---

Definitions:

Gerontology

The scientific study of old age and aging.

Ontology

The philosophical study of the nature of being, existence, or reality, as well as the basic categories of being and their relations.

Morphology

The study of the form and structure of words and their parts in a language.

Life Course

The sequence of significant events, experiences, and transitions in an individual's life from birth to death.