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.

---

Definitions:

Employment Opportunity

The availability of job positions that potential employees can apply for, often influenced by economic, societal, and organizational factors.

Age Discrimination

Unfair treatment or bias against individuals or groups based on their age, especially in employment practices.

Employment Act

Legislation that sets out the rights and obligations of employees and employers within the workplace.

Forced Retirement

The situation in which an employee is compelled to retire against their wishes, often due to company policies or economic pressures.