Simon Lists His Building at Current Replacement Value, Rather Than

question 19

Multiple Choice

Simon lists his building at current replacement value, rather than the price he paid for the building. What principle is Simon violating?

• A)Going concern
• B)Cost
• C)Reliability
• D)Business entity

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Definitions:

Slip

The difference between the synchronous speed of an induction motor's magnetic field and the actual speed of the rotor, expressed as a percentage.

Voltage

The electrical potential difference or force that causes current to flow in a circuit.

Magnetic Flux

Magnetic flux refers to the measure of the quantity of magnetism, considering the strength and the extent of a magnetic field.

Pole Polarity

Refers to the magnetic polarity (north or south) of the poles in a magnetic field, crucial in the functioning of electric motors and generators.