Thirty years ago,Star Grocer Corporation had purchased a building for its grocery store by paying $30,000.Based on inflation estimates,the amount of the building has been adjusted in the accounting records.The building is now reported at $75,000 in Star Grocer's financial statements.Which of the following concepts or principles of accounting is being violated?

Question

Quizplus · Accepted Answer

The cost principle states that assets should be recorded at their original cost, not adjusted for inflation or market value changes. Adjusting the building's value to $75,000 violates this principle.

Thirty Years Ago,Star Grocer Corporation Had Purchased a Building for Its