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:

Representative Sample

A part of a population that accurately represents the entire group's composition.

Observer Effect

The phenomenon where the act of observation alters the behavior of the observed subject or the outcome of an experiment.

Naturalistic Observation

A research method where subjects are observed in their natural environment without any manipulation by the researcher.

Ethical Research

The practice of conducting studies and experiments in accordance with established ethical principles to ensure fairness, integrity, and respect for all participants.