Land was acquired in 2021 for a future building site at a cost of $40,000. The assessed valuation for tax purposes is $27,000, a qualified appraiser placed

 Land was acquired in 2021 for a future building site at a cost of $40,000. The assessed valuation for tax purposes is $27,000, a qualified appraiser placed its value at $48,000, and a recent firm offer for the land was for a cash payment of $46,000. The land should be reported in the financial statements at:

 Answer

$40,000.

Which of the following is not an adjusting entry?

 

Temporary accounts do not include:

Multiple Choice

Depreciation expense.


Cost of goods sold.


Salaries payable.


Supplies expense.

Answer

 Salaries payable.

 

The assumption that in the absence of contrary information a business entity will continue indefinitely is the:

Multiple Choice

Entity assumption.


Historical cost assumption.


Going concern assumption.


Periodicity assumption. 

Answer 

Going concern assumption.
 

 Permanent accounts do not include:

Multiple Choice

Salaries payable.

Interest expense.

Deferred sales revenue.

Prepaid rent. 

Answer

 Interest expense.

Thanks