Beverly Dalton Started Her Business as a Sole Proprietorship

question 56

Multiple Choice

Beverly Dalton started her business as a sole proprietorship.At that time,the business purchased land for $51,000.The December 31,2019 market value of the land is $92,000.On the December 31,2019 balance sheet,this asset should be reported at ________ under U.S.GAAP and at ________ under international reporting standards.

• A) $51,000; $51,000
• B) $92,000; $92,000
• C) $51,000; $92,000
• D) $92,000; $51,000

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Definitions:

Simple Interest

Interest calculated on the principal amount of a loan or investment, without compounding over time.

Yield

The income return on an investment, typically expressed as an annual percentage rate based on the investment’s cost, its current market value, or its face value.

Promissory Note

A financial instrument that contains a written promise by one party to pay another a definite sum of money either on demand or at a specified future date.

Commercial Paper

A short-term unsecured debt instrument issued by corporations, typically for financing accounts receivable and inventories.