7. The Reynolds Company estimated that the value of its land had increased from $10,000 to $16,000
and therefore wrote up the land account to $16,000.
Which accounting concept(s) was (were)
unit of measure concept
cost and objectivity concepts
8. Aztec Company is selling a piece of land adjacent to their business.
An appraisal reported the market
value of the land to be $100,000.
The Majestic Company initially offered to buy the land for
The companies settled on a purchase price of $95,000.
On the same day, another piece
of land on the same block sold for $102,000.
Under the cost concept, what is the amount that will
be used to record this transaction in the accounting records?
9. If total liabilities decreased by $25,000 during a period of time and owner's equity increased by
$30,000 during the same period, the amount and direction (increase or decrease) of the period's
change in total assets is
10. Expenses are recorded when
cash is paid for services rendered
a bill is received in advance of services rendered
services are rendered
none are correct
11. If total assets decreased by $47,000 during a period of time and owner's equity increased by $24,000
during the same period, then the amount and direction (increase or decrease) of the period's