Which One of the Following Is True According to Generally

question 29

Multiple Choice

Which one of the following is true according to generally accepted accounting principles?

• A) Depreciation is recorded based on the market value principle.
• B) Income is recorded based on the realization principle.
• C) Costs are recorded based on the realization principle.
• D) Depreciation is recorded based on the recognition principle.
• E) Costs of goods sold are recorded based on the recognition principle.

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Definitions:

Powertrain Components

Parts of a vehicle's system that produce power and deliver it to the road surface, including the engine, transmission, driveshafts, differentials, and final drive.

Drivetrain Components

The collective parts of a vehicle's drivetrain system, including the engine, transmission, driveshafts, differentials, and axles, responsible for propelling the vehicle.

In-Phase

Usually used to mean properly timed or properly balanced. A driveshaft that is in-phase would be assembled balanced and with the yokes aligned.

Drive Axles

The axles connected to the vehicle's drivetrain that are responsible for transmitting power from the transmission to the wheels, enabling movement.