'Ice-Cream R Us' Ltd

question 3

Multiple Choice

'Ice-cream R Us' Ltd. just purchased a block of land, on which it will build a new factory for its operations. 'Ice-cream R Us' paid $500,000 cash to the land owner. An independent evaluation reveals that the land is worth $550,000. Using historical cost as a measurement base, how should 'Ice-cream R Us' recognise the land purchase in its financial statements?

• A) $500,000 recognised as an asset (land).
• B) $550,000 recognised as an asset (land).
• C) $500,000 recognised as an asset (land) and $50,000 as a liability.
• D) The land should not be recognised as an asset as it cannot be measured with reliability.

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Definitions:

Medical Record

A comprehensive document that contains the history, diagnosis, treatment, and prognosis of a patient's medical condition.

Informed Consent

A process in which a patient receives full disclosure of and understands the risks, benefits, and alternatives of a proposed procedure or treatment before agreeing to it.

Specimen

A sample taken for medical testing or research.

Medical Assistant

An integral member of the health care delivery team, qualified by education and experience to work in the administrative office, the examining room, and the physician office laboratory.