Lorna Smith Decided to Start Her Own CPA Practice as a Professional

question 95

Multiple Choice

Lorna Smith decided to start her own CPA practice as a professional corporation, Smith CPA PC. Her corporation purchased an office building for $35,000 that her real estate agent said was worth $50,000 in the current market. The corporation records the building as a $50,000 asset because Lorna believes that is the real value of the building. Which of the following concepts or principles of accounting is being violated?

• A)cost principle
• B)economic entity assumption
• C)monetary unit assumption
• D)going concern assumption

Realize the significance of preparing both sides of an issue when presenting to a neutral audience.

Develop strategies to overcome stage fright and enhance presentation delivery.

Describe types and characteristics of shares in a corporation.

Explain the rights and responsibilities of shareholders and directors in a corporation.

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Definitions:

Global Variables

Variables that are defined outside of any function or block, accessible by any part of the program.

Programming

The process of designing, writing, testing, debugging, and maintaining the source code of computer programs.

Scope

The region of a program where a defined variable or function is accessible.

Space

In computing, it refers to the amount of digital storage or memory capacity, or the blank character used in text.