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 constraint.
B) the matching principle.
C) the conservatism constraint.
D) industry practice constraint.
Correct Answer:
Verified
Correct Answer:
Verified
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