The Accounting Concept That Indicates Assets Should Be Reported at the Price

question 155

Multiple Choice

The accounting concept that indicates assets should be reported at the price that would be received to sell an asset is the

• A)economic entity assumption.
• B)monetary unit assumption.
• C)fair value principle.
• D)historical cost principle.

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Definitions:

Equal Income

A hypothetical or policy-driven scenario where all individuals or households receive the same amount of income.

Transitory Income

Income that is temporary or not consistent, such as bonuses, gifts, or any other earnings that are not regular or guaranteed.

Absolute Level

A specific, fixed point or quantity that is not relative or compared to any other point or quantity.

Federal Government

The national government of a federated state, which shares powers with subnational governments under a system of federalism.