The Maxim Company acquired a building for $500,000. Maxim had the building appraised, and found that the building was easily worth $575,000. The seller had paid $300,000 for the building 6 years ago. Which accounting principle would require Maxim to record the building on its records at $500,000? (Hint: There are four accounting principles. Choose one of the principles. ) Group of answer choices Going-concern assumption. Cost principle. Business entity assumption. Monetary unit assumption.
The Maxim Company acquired a building for $500,000. Maxim had the building appraised, and found that the building was easily worth $575,000. The seller had paid $300,000 for the building 6 years ago. Which accounting principle would require Maxim to record the building on its records at $500,000? (Hint: There are four accounting principles. Choose one of the principles. ) Group of answer choices Going-concern assumption. Cost principle. Business entity assumption. Monetary unit assumption.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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28)The Maxim Company acquired a building for $500,000. Maxim had the building appraised, and found that the building was easily worth $575,000. The seller had paid $300,000 for the building 6 years ago. Which accounting principle would require Maxim to record the building on its records at $500,000?
(Hint: There are four accounting principles. Choose one of the principles. )
Group of answer choices
Going-concern assumption.
Cost principle.
Business entity assumption.
Monetary unit assumption.
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