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:

Opportunity Cost

The cost of missing out on potential benefits from other alternatives when making a choice.

Forgone Current Income

The income an individual or entity could have earned but chose to forego for pursuing an alternative.

State Universities

Public institutions of higher education that are primarily funded by a state or local government.

Opportunity Cost

The result of losing potential upsides from other choices by committing to one.