Multiple Choice
Lisa Smith decided to start her CPA practice as a sole proprietorship.The business purchased an office building for $35,000.The real estate agent said the building was worth $50,000 in the current market.The business 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
Correct Answer:
Verified
Correct Answer:
Verified
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