Thirty Years Ago,Star Grocer Corporation Purchased a Building for Its

question 26

Multiple Choice

Thirty years ago,Star Grocer Corporation purchased a building for its grocery store for $30,000.Based on inflation estimates,the amount of the building has been adjusted in the accounting records.The building is now reported at $75,000 in Star Grocer's financial statements.Which of the following concepts or principles of accounting is being violated?

• A)going concern assumption
• B)revenue realization concept
• C)economic entity assumption
• D)cost principle

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Definitions:

Formal presentation

A structured, prepared speech that is given to an audience for the purpose of informing, persuading, or entertaining.

Guessing

Making an assumption or judgement without sufficient information or evidence, often relying on intuition rather than factual verification.

Organization levels

The hierarchy within an organization that starts from the top with strategic management, through to middle management and down to operational levels.

Press releases

Official statements issued to newspapers and other news media for the purpose of providing information, an official statement, or making an announcement.