Wilson Company owns land which cost 14,100,000. If a "quick sate" of the land was...
FINANCIAL
POST UTME OAU
Wilson Company owns land which cost 14,100,000. If a "quick sate" of the land was necessary to generate cash, the company feels it would receive only ?80,000. The company continues to report the asset on the balance sheet at ?100,000 This is justified under which of the following concepts?
- A) The historical-cost principle
- B) The value is tied to objective and verifiable past transactions
- C) Neither
- D) Both
Correct Answer: A) The historical-cost principle
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