Which of the Following Is Allowed Under Generally Accepted Accounting

question 84

Multiple Choice

Which of the following is allowed under generally accepted accounting principles?

• A)A large company recorded the $20 cost of a tool as an expense, although the item is expected to be used for 3 years.
• B)The Equipment account shows a balance of $55,000. This amount represents the original cost of $75,000 less the accumulated depreciation of $20,000.
• C)An owner lists the full cost of his or her personal automobile, which is occasionally used for business purposes, on the company's balance sheet.
• D)A company was offered $60,000 for land that it had purchased for $15,000. The company did not sell the land but increased the Land account to $60,000.

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Definitions:

Proper Places

Suitable or appropriate locations for people or things.

Misplaced File

A document or electronic file that is not in its correct or designated location, potentially leading to inefficiency or loss of information.

Reconstruct

To rebuild something that has been damaged or destroyed back to its original state.

Original Documents

The authentic, first-generation documents or records, not reproductions or copies.