Lisa Smith Decided to Start Her CPA Practice as a Professional

Multiple Choice

Lisa Smith decided to start her CPA practice as a professional corporation, Smith CPA, PC. The corporation purchased an office building for $35,000. The real estate agent said the building was worth $50,000 in the current market. The corporation recorded the building as a $50,000 asset because Lisa believes that is the real value of the building. Which of the following concepts or principles of accounting is being violated?

A) cost principle
B) economic entity assumption
C) monetary unit assumption
D) going concern assumption