Chapter 1 Quiz - Quiz Question 1 The Maximum Experience...

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Quiz Question 1: The Maximum Experience Company acquired a building for The Maximum Experience Company acquired a building for $500,000. Maximum Experience had an appraisal done, and found that the building was worth $575,000. The seller had paid $300,000 for the building 6 years ago. Which accounting principle would prescribe that Maximum Experience record the building on its records at $500 000? the building on its records at $500,000? 1. Cost principle. 2. Objectivity principle. 3. Business entity principle. 4. Going Concern Principle
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Quiz Question 2: A company has twice as much owners’ equity as it A company has twice as much owners equity as it does liabilities. If total liabilities are $50,000, what amount of assets are owned by the company? 1. $ 50,000. 2. $100,000. 3. $150,000. 4. $200,000.
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