Martin Corporation Purchased Land in 2007 for $290,000

question 94

Multiple Choice

Martin Corporation purchased land in 2007 for $290,000. In 2015, it purchased a nearly identical parcel of land for $460,000. In its 2015 balance sheet, Martin valued these two parcels of land at a combined value of $920,000. By reporting the land in this manner, Martin Corp. has violated the

• A)historical cost principle
• B)convergence
• C)economic entity assumption
• D)monetary unit assumption

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Definitions:

Competent Communicator

An individual who effectively uses both verbal and nonverbal messages to convey ideas and feelings appropriately and sensitively across various contexts and cultures.

Effective Messages

Communications that are clearly understood, achieve their intended purpose, and receive a constructive response.

Communication Context

Refers to the environment or situation in which communication occurs, including factors such as physical setting, cultural background, and social dynamics that influence the communication process.

Communication Noise

Refers to any form of interference that disrupts, distorts, or impedes the communication process between individuals.