The Accounting Principle That Requires Financial Statement Information to Be

question 157

Multiple Choice

The accounting principle that requires financial statement information to be based on costs incurred in business transactions, and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange, is the:

• A)Accounting equation.
• B)Cost principle.
• C)Going concern principle.
• D)Business entity principle.
• E)Revenue recognition principle.

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