Which of the Following Is True About the Cost Principle

question 86

Multiple Choice

Which of the following is true about the cost principle?

• A) It limits the economic data recorded in an accounting system to data related to the activities of that company.
• B) It initially records assets in the accounting records at their purchase price.
• C) It assumes that a company will continue in business indefinitely.
• D) It reports the revenues earned by a company for a period with the expenses incurred in generating the revenues.

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Definitions:

Ultradian

Referring to recurrent periods or cycles repeated throughout a 24-hour day, such as the stages of sleep.

Infradian

Referring to biological rhythms with cycles that are longer than 24 hours, such as menstrual cycles or seasonal behaviors.

Prefrontal Cortex

The anterior part of the frontal lobes of the brain, involved in complex cognitive behavior, decision making, and moderating social behaviour.

Brodmann's Areas

Regions of the cerebral cortex defined by their cytoarchitectonic characteristics and associated with different brain functions.