The Principle That Indicates That Assets Should Be Reported at the Price

question 116

Multiple Choice

The principle that indicates that assets should be reported at the price received to sell an asset is the

• A) historical cost principle.
• B) fair value principle.
• C) full disclosure principle.
• D) consistency principle.

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Definitions:

Automobile Industry

The sector of the economy that manufactures and sells motor vehicles, including cars, trucks, and motorcycles, playing a critical role in global transportation.

Textile Industry

An industry primarily concerned with the design, production, and distribution of yarn, cloth, and clothing. It was one of the earliest industries to industrialize in the 19th century.

Financial Savings

The portion of personal income that is set aside, not spent on immediate consumption, and typically put into a bank or investment account for future use.