When a New Company Was Formed, One Partner Contributed Some

question 59

Multiple Choice

When a new company was formed, one partner contributed some used equipment he owned. The equipment was appraised at $44,000 and $50,000 by two different dealers. The accountant entered the equipment at $44,000 in the financial records of the partnership. This is an example of

• A) the materiality principle.
• B) the conservatism principle.
• C) the matching principle.
• D) industry practice principle.

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Definitions:

Adler

Alfred Adler was an Austrian medical doctor and psychotherapist who founded the school of individual psychology, focusing on the importance of feelings of inferiority.

Personality

A mix of attributes and traits that establish a person's unique personality and ways of acting.

Birth Order

The chronological order of siblings in a family, which is believed to influence their personality and psychological development.

Personality Measures

Tools or assessments designed to evaluate and quantify individual differences in various aspects of personality.