THE PURCHASE CONSIDERATION THAT IS LOWER THAN THE NET ASSET IMPLIES THAT, THE BUYER HAS GAINED THE ADVANTAGE OF
A. capital reserve ✓ B. net loss C. revenue reserve D. net income The answer to the question is: A. capital reserve When the purchase consideration is lower than the net asset value, it implies that the buyer has gained the advantage of capital…
STATIONERY WHICH WILL BE USED OVER A LONG PERIOD OF TIME IS USUALLY RECORDED AS AN EXPENSE INSTEAD OF AN ASSET. THIS CONCEPT IS CALLED
A. entity B. accrual C. realization D. materiality ✓ The answer to the question is: D. materiality The concept of recording stationery used over a long period of time as an expense instead of an asset is related to the accounting principle of materiality.…
Study Guide
