Tate Corporation Purchased a Building for Its Grocery Store for $30,000

question 102

Multiple Choice

Tate Corporation purchased a building for its grocery store for $30,000 in 1970.Based on inflation estimates,the amount of this asset has been adjusted in the accounting records.The building is now reported at $75,000.Which of the following concepts or principles of accounting is being violated?

• A) Going-concern concept
• B) Stable monetary unit concept
• C) Entity concept
• D) None of the above

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Definitions:

Client-Based

A focus or approach that prioritizes the needs, preferences, and satisfaction of clients or customers in service or product design and delivery.

Global Organizations

are businesses or enterprises that operate in multiple countries around the world, facing challenges and opportunities from diverse cultures, legal systems, and market dynamics.

Team-Based Organizational Structure

An organizational layout where tasks and responsibilities are allocated to groups rather than individuals, fostering collaboration.

Flat Organizational Hierarchy

is a structure where there are few or no levels of middle management between staff and executives, often leading to faster decision-making and increased flexibility.