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.

---

Definitions:

Moratorium

A temporary suspension or delay of an activity or a law, often used in the context of legal matters or developmental psychology as a period of identity exploration.

Kohlberg's Stages

A theory proposed by Lawrence Kohlberg that outlines the stages of moral development individuals go through, from basic obedience to universal principles of justice.

Identity Achievement

A stage in adolescent development where individuals have explored various options and have made a deliberate choice regarding their occupation and beliefs.

Parenting Style

The manner in which a parent or caregiver interacts with and raises their child, often categorized into types such as authoritative, authoritarian, permissive, and uninvolved.