The Principle That States That Assets Acquired by the Business

question 13

Multiple Choice

The principle that states that assets acquired by the business should be recorded at their actual price is the:

• A) stable monetary unit assumption
• B) objectivity assumption
• C) cost assumption
• D) reliability assumption

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Definitions:

Accounts Receivable

Money owed to a company by its customers for products or services delivered on credit.

Credit Sales

Transactions where goods or services are provided with the agreement that payment will be made at a later date.

Recording Process

The systematic method of capturing all financial transactions of a company to ensure accurate financial reporting and analysis.

Chronological Record

Documentation or recording of events in the order of their occurrence over time.