Which of the Following Is an Example of Proper Accounting

question 84

Multiple Choice

Which of the following is an example of proper accounting when it comes to reporting values on a company's balance sheet?

• A)X Company reported its land at the amount it could be sold for on the balance sheet date,which is higher than the original cost of the land.
• B)X Company reported its damaged equipment at an amount lower than it originally cost.
• C)X Company reported its inventory at its current market value,which is higher than its original cost.
• D)X Company reported its notes receivable at the amount it originally loaned to employees,some of whom have since been laid off.

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Definitions:

Direct Material Cost

The cost of raw materials and components that are directly used in the production of a product.

Robot Toys

Mechanical and electronic toys designed to exhibit behaviors or perform tasks, often with programmable features to engage and educate users.

Break-Even Point

The level of production or sales at which total revenues equal total costs, resulting in zero profit.

Partial Moves

Actions or strategies that are implemented to a limited extent, often as a trial or preliminary step before full execution.