Andre Dickinson, Owner of Andre's Fine Wines, Also Owns a Personal

question 181

Multiple Choice

Andre Dickinson, owner of Andre's Fine Wines, also owns a personal residence that costs $475,000. The market value of his residence is $625,000. During preparation of the financial statements for Andre's Fine Wines, the accounting concept most relevant to the presentation of Andre's home is

• A) the economic entity assumption.
• B) the fair value principle.
• C) the monetary unit assumption.
• D) convergence.

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