The Principle That States That Assets Acquired by the Business

question 39

Multiple Choice

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

• A)subjectivity principle.
• B)cost principle of measurement.
• C)revenue-recognition principle.
• D)matching principle.

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Definitions:

Technical Analysis

An approach to valuing securities by examining past patterns of price and volume. The technique is based on the idea that such patterns repeat themselves.

Preferred Stock

is a type of stock that provides a specific dividend that is paid before any dividends are paid to common stock holders, and typically does not have voting rights.

Periodic Payments

Recurring payments made over a period of time, such as monthly mortgage or insurance payments.

Voting Rights

The rights of shareholders to vote on corporate matters, such as the election of the board of directors.