A business reports its own office stationery on the balance sheet at its $400 cost, although it cannot be sold for more than $10 as scrap paper. Which accounting principle and/or assumption justifies this treatment?
Answer to relevant QuestionsWhat do accountants mean by the term revenue?Identify the accounts listed in QS 4-9 that would be included in a post-closing trial balance.Refer to Nokia’s income statement in Appendix A. What title does it use for cost of goods sold?Refer to Nokia’s balance sheet in Appendix A. What does it title its plant assets? What is the book value of its plant assets at December 31, 2009?Refer to the statement of cash flows for Nokia in Appendix A. For the year ended December 31, 2009, what was the amount for repayment of bank loans?
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