Which of the Following Concepts (Or Principles)would Require That an Item

question 67

Multiple Choice

Which of the following concepts (or principles) would require that an item be recorded at the amount actually paid rather than at the estimated market value?

• A)Profit recognition principle
• B)Entity concept
• C)Going- concern concept
• D)Cost principle

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Definitions:

Sued

The act of bringing a lawsuit against an individual or entity, claiming that they committed a wrong or injustice that should be remedied through legal action.

Evict Tenant

To evict a tenant means to legally remove a tenant from a rental property, typically due to violation of a rental agreement or non-payment of rent.

Prescribed Procedure

A set method or course of action dictated by rules or regulations that is meant to be followed in specific situations.

Behind on the Rent

The situation where a tenant fails to pay their rent within the specified timeline as per their lease or rental agreement.