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luda_lava [24]
2 years ago
10

A business purchases a vehicle for $35,000. Since the vehicle was advertised for $40,000 the company decided to record the asset

at $40,000. This is a violation of which accounting principle?A. RelevanceB. Historical costC. MaterialityD. Recognition
Business
1 answer:
grin007 [14]2 years ago
7 0

Answer: This is a violation of "B. Historical cost" principle.

Explanation: This principle establishes that assets must be registered at the time of purchase at historical cost.

The historical cost of an asset initially arises from its purchase value. To this value are added all the expenses that were necessary to place it in a position to operate or generate income.

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Suppose that you buy a new car, and you purchase it with a bag of gold coins minted in a foreign country. Which of the following
aleksley [76]

Answer:

D. The gold coins are a commodity money because even though they were issued by a foreign government, the gold has intrinsic value

Explanation:

Commodity money is money that has intrinsic value. Its value can be derived from the material from which it is made. E.g. gold, salt, silver

Fiat money is money that has no intrinsic value but the government establishes it as money.

I hope my answer helps you

5 0
2 years ago
You are a bond analyst working for a hedge fund. A bond you follow has face value 100, has a coupon rate of 5% (paid once a year
nignag [31]

Answer:

$101.22

Explanation:

Please see attachment

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Alla [95]

Answer: Virtual organization

Explanation:

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Which of the following terms is used to describe the actors and forces outside marketing that affect marketing management's abil
larisa86 [58]

Answer:

A.the marketing environment

Explanation:

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3 0
2 years ago
Read 2 more answers
E3.3 (LO 3) (Unknown Rate) HQ Ltd. purchased a used truck from Trans Auto Sales Inc. HQ paid a $4,000 down payment and signed a
ivolga24 [154]

Answer: $35,000

Explanation:

The payments of $1,033.34 at the end of every month is a constant amount which makes it an annuity.

Present value of annuity:

= Annuity * (1 - (1 + rate) ^-no. of periods) / rate

Rate needs to be made a monthly rate:

= 4%/12

= 4/12%

= 1,033.34 * ( 1 - ( 1 + 4/12%) ⁻³⁶/ 4/12%

= $35,000

Purchase price = Down payment + Present value of annuity

= 4,000 + 35,000

= $39,000

7 0
2 years ago
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