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:

Zheng He

A Chinese mariner, explorer, diplomat, and fleet admiral who commanded expeditionary voyages to Southeast Asia, the Middle East, and East Africa from 1405 to 1433.

Borderland

A region near or along a border that often embodies a blend of cultures, identities, and political tensions.

French

Relating to France, its people, culture, or language.

Dutch

Referring to the people of the Netherlands, their language, or their culture, recognized for contributions to art, navigation, and commerce.