Lorna Smith Decided to Start Her Own CPA Practice as a Professional

Multiple Choice

Lorna Smith decided to start her own CPA practice as a professional corporation,Smith CPA PC.Her corporation purchased an office building for $35,000 that her real estate agent said was worth $50,000 in the current market.The corporation recorded the building as a $50,000 asset because Lorna 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