Which of the Following Accounting Principles Would Require That All

question 58

Multiple Choice

Which of the following accounting principles would require that all goods and servicespurchased be recorded at cost?

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

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Definitions:

Informal Communication

the exchange of information that occurs outside of formal communication structures, often casually or spontaneously.

Interdependencies

Mutual reliance between two or more groups or entities, where the actions of one significantly affect the outcomes of the others.

Span of Control

Span of Control describes the number of subordinates or tasks that a manager or leader can effectively oversee, manage, or control directly.

Formalization

The extent to which rules, procedures, job roles, and communications within an organization are written and explicitly articulated.