The Objectivity Principle

question 236

Multiple Choice

The objectivity principle:

• A)Means that information is supported by independent,unbiased evidence.
• B)Means that information can be based on what the preparer thinks is true.
• C)Means that financial statement should contain information that is optimistic.
• D)Means that a business may not recognize revenue until cash is received.
• E)Means the assets acquired must be recorded at what the company paid for them.

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Definitions:

Total Product

The overall quantity of output or goods produced by a firm or economy over a specific time period.

Total Fixed Cost

The overall amount of costs that are unaffected by production volume or output.

Average Total Cost

the total cost of production divided by the number of units produced, representing the cost per unit.