Genaral accepted accounting principles


Which of the following is allowed under generally accepted accounting principles?

A) A company was offered $60,000 for land that it had purchased for $15,000. The company did not sell the land but increased the Land account to $60,000.

B) An owner lists the full cost of his or her personal automobile, which is occasionally used for business purposes, on the company's balance sheet.

C) A large company recorded the $20 cost of a tool as an expense, although the item is expected to be used for 3 years.

D) The Equipment ledger account shows a balance of $55,000. This amount represents the original cost of $75,000 less the accumulated depreciation of $20,000.

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Accounting Basics: Genaral accepted accounting principles
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