Which one of the following is violated when a sole proprietorship records its magazine stand at the present value of the cash flows expected to be earned from the sale of magazines over the expected life of the stand?
A)Original cost
B)Fair market value
C)Going concern
D)Revenue recognition

Question

Quizplus · Accepted Answer

Original cost refers to the actual cost incurred to acquire the asset, but recording the magazine stand at the present value of its expected cash flows violates this principle as it uses future cash flows instead of actual cost.

Which One of the Following Is Violated When a Sole