J Green Is the Sole Owner and Manager of the ABC

question 30

Multiple Choice

J. Green is the sole owner and manager of the ABC Lawn and Grass Service. Green purchased a new station wagon only for personal use. Green uses a dump truck in the business. Which of the following assumptions, principles, or constraints would be violated if Green recorded the cost of the station wagon as an asset of the business?

• A) Materiality constraint
• B) Conservatism constraint
• C) Continuity assumption
• D) Full-disclosure principle
• E) Separate entity assumption

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Definitions:

Endosperm

A tissue produced inside the seeds of most flowering plants around the time of fertilization. It provides nutrition in the form of starch, though it can also contain oils and protein, to the developing embryo.

Hypocotyl

The part of a seedling's stem situated below the cotyledons and above the root.

Compound Fruit

A type of fruit that develops from multiple ovaries of one flower or the ovaries of multiple flowers.