The Cost Principle Requires That When Assets Are Acquired, They

question 32

Multiple Choice

The cost principle requires that when assets are acquired, they be recorded at

• A) appraisal value.
• B) the amount paid.
• C) the amount the asset could be sold for.
• D) list price.

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Definitions:

Inaccurate Figures

Data or numerical information that is incorrect or does not accurately reflect the true situation or measurement.

Bias-Free Language

Communication that avoids words or phrases that discriminate against specific groups or imply partiality.

Unfairly Stigmatize

To unjustly assign a mark of disgrace or infamy to an individual or group.

Diplomatic

Pertaining to the skillful management of relationships and negotiation between people or nations in a tactful and effective manner.