The Historical Cost Principle Requires That When Assets Are Acquired

question 170

Multiple Choice

The historical cost principle requires that when assets are acquired, they be recorded at

• A) market value.
• B) the amount paid for them.
• C) selling price.
• D) list price.

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Definitions:

Ammonia

A colorless gas with a characteristic pungent odor, NH3, which is a compound of nitrogen and hydrogen and is used in the manufacture of fertilizers, explosives, and cleaning products.

Nitrogenous Waste

Nitrogenous Waste refers to waste substances containing nitrogen, such as ammonia, urea, and uric acid, produced by the metabolism of proteins and nucleic acids in living organisms.

Uric Acid

A waste product formed from the breakdown of purines, substances found in many foods, which is excreted in the urine.

Birds

Warm-blooded vertebrates characterized by feathers, beaks without teeth, laying of hard-shelled eggs, a high metabolic rate, and a four-chambered heart.