b. It corresponds with the natural business cycle running from one low point in the cycle to the next low point.
17. In March 2016 the Taylor company sells a building to the Carla company. At that time, the building's original cost on Taylor books is $250,000. The book value of the building is $150,000. The building was listed for sale at $190,000, appraised for taxes at $173,000 and sold to Carla company for $177,000 cash. At what value should Carla company record the building and for which reason?
a. $150,000 based on the going concern principle
b. $173,000 based on conservatism principle
c. 177,000 based on the historical cost principle
d. $250,000 based on the full disclosure principle
16. Which statement best describes the accounting cycle of a business?
c. it begins with the recording of the first economic transaction in an accounting period and runs through the post-closing trial balance.
As per Netmba.com "The accounting process is a series ...
Response discusses the accounting cycle of a business