Andre Dickinson, owner of Andre’s Fine Wines, also owns a personal residence that costs $475,000. The market value of his residence is $625,000. During preparation of the financial statements for Andre’s Fine Wines, the accounting concept most relevant to the presentation of Andre’s home is
Andre Dickinson, owner of Andres Fine Wines, also owns a personal residence that costs $475,000. The market value of his residence is $625,000. During preparation of the financial statements for Andres Fine Wines, the accounting concept most relevant to the presentation of Andres home is
a. the economic entity assumption.
b. the fair value principle.
c. the monetary unit assumption.
d. convergence.
