AHM-520 Exam Dumps | The Montvale Health Plan purchased a piece of real estate 20 years ago for $40,000. It recently sold

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Question 126

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Question 126/129

The Montvale Health Plan purchased a piece of real estate 20 years ago for $40,000. It recently sold the real estate for $80,000 and reported a capital gain of $40,000 on this sale. Even though the purchasing power of the dollar declined by half during this period and Montvale realized noactual gain in purchasing power, Montvale recorded in its accounting records the $40,000 gain from this sale. This situation best illustrates the accounting concept known as the:

A. Time-period concept

B. Concept of periodicity

C. Measuring-unit concept

D. Full-disclosure concept

Correct Answer: C

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