The Accounting Convention That Means Only Those Transactions That Are

question 8

Multiple Choice

The accounting convention that means only those transactions that are capable of being expressed in monetary terms are recorded is the:

• A) historical cost convention.
• B) conservatism convention.
• C) money measurement convention.
• D) reliability convention.

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Definitions:

UCC

Comprehensive legal guidelines for all commercial transactions in the United States are established by the Uniform Commercial Code.

Proper Reject

In the context of contracts or sales, a proper reject refers to the legitimate refusal to accept goods or services because they do not meet the agreed-upon specifications or standards.

Perfect Tender Rule

A principle in commercial law requiring goods delivered under a sales contract to exactly meet the terms of the agreement.

Koch Petroleum

A division within Koch Industries, primarily involved in the refining and distribution of petroleum products.