Tate Corporation purchased a building for its grocery store for $30,000 in 1970.Based on inflation estimates,the amount of this asset has been adjusted in the accounting records.The building is now reported at $75,000.Which of the following concepts or principles of accounting is being violated?
A) Going-concern concept
B) Stable monetary unit concept
C) Entity concept
D) None of the above

Question

Quizplus · Accepted Answer

The stable monetary unit concept assumes that the value of money remains stable over time. By adjusting the value of the building based on inflation estimates, this concept is violated.

Tate Corporation Purchased a Building for Its Grocery Store for $30,000