Which of the Following Best Describes the Proper Treatment of Cash

question 77

Multiple Choice

Which of the following best describes the proper treatment of cash discounts on acquired machinery?

• A) The historical cost of the machinery should be the invoice price;the discount should be ignored.
• B) The historical cost of the machinery should be the net-of-discount amount,regardless of whether the discount is actually taken.
• C) The historical cost of the machinery should be the net-of-discount amount only if the discount is actually taken.
• D) The historical cost of the machinery should be the invoice price plus the amount of the discount which is treated a interest capitalized on the purchase.

Understand the implications of moving from a non-business background to considering entrepreneurship.

Understand the basic principles and theories of management, including the systems approach.

Recognize the historical development of management theories, including contributions from key figures like Henri Fayol and Frederick Taylor.

Acknowledge the significance of the historical perspective in understanding current management practices.

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