Which of the Following Is a TRUE Statement

question 32

Multiple Choice

Which of the following is a TRUE statement?

• A)Conservatism requires accountants to intentionally understate assets.
• B)Separate entity assumption in accounting requires that the financial activities of the owners of a company be reported on the company's balance sheet.
• C)The cost principle states that recording activities at cost will result in the balance sheet representing the true value of the company.
• D)A transaction is recorded in accounting if it has a measurable financial effect on the assets,liabilities or stockholders' equity of a business.

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Definitions:

Executive Summary

A concise overview of a document's main points, typically placed at the beginning to inform readers about its contents quickly.

Problem Solution

A method of structuring communication or written content by identifying an issue and proposing one or more solutions to address it.

Synopsis

A brief summary or overview of the content, plot, or main points of a book, film, article, etc.

Audience Satisfaction

The degree to which the expectations, desires, or needs of an audience are met by a performance, presentation, or product.