Some Generally Accepted Accounting Principles Have Simply Been Accepted as Appropriate

question 35

True/False

Some generally accepted accounting principles have simply been accepted as appropriate because of their universal application rather than due to the action of an authoritative accounting rule-making body.

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Definitions:

Capital Assets

Long-term assets acquired for use in business operations, expected to be used or held for more than one financial period.

Capitalized

Costs that are recognized as part of an asset on the balance sheet rather than being expensed, often related to the acquisition or construction of a long-term asset.

Amortized

The process of gradually writing off the initial cost of an asset or loan over a period of time in a systematic and rational manner.

Deferred Contribution

Contributions or payments made to a fund or organization that are to be recognized as revenue over a future period.