Recording Land at Its Cost Rather Than Its Appraisal Value

question 17

Multiple Choice

Recording land at its cost rather than its appraisal value illustrates

• A)the matching principle.
• B)the realization principle.
• C)the cost basis principle.
• D)the full disclosure principle.

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Definitions:

Administrative Expenses

Costs related to the general operation of a business, such as salaries of executive personnel, accounting, and human resources.

Activity Variance

The difference between the budgeted amount of activity and the actual activity level.

Tenant-Days

A metric used in property management to calculate the total days that units were occupied by tenants over a period.

Direct Labor

The labor costs directly related to the production of goods, involving workers who physically manufacture or assemble products.