Which of the Following Statements About the Concepts Underlying the Balance

question 220

Multiple Choice

Which of the following statements about the concepts underlying the balance sheet is correct?

• A)A company bought land for $5 million dollars 10 years ago.The land is now worth $15 million.The company should increase the book value of this asset on its balance sheet to reflect its current value.
• B)All events affecting the current value of a company are reported on the balance sheet.
• C)According to the cost principle,assets are valued at their replacement cost.
• D)If an asset's value increases,the increase in value is generally not recorded under GAAP.

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Definitions:

Effectively Teach

The process or method of imparting knowledge, skills, or values in a manner that leads to optimal learning and understanding.

Discipline

Methods or practices used to teach and enforce acceptable patterns of behavior, often within the context of raising children.

Organize

The process of arranging or structuring elements in a systematic way to achieve a desired outcome or order.

Formal Logic

The branch of logic concerned with the structure of reasoning and the validity of arguments, often using symbolic methods.