Which One of the Following Is True According to Generally

question 62

Multiple Choice

Which one of the following is true according to Generally Accepted Accounting Principles?

• A)Depreciation may or may not be recorded at management's discretion.
• B)Income is recorded based on the matching 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 matching principle.

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Definitions:

Zoning

The regulatory process of dividing land into areas with specific uses, such as residential, commercial, or industrial, to control urban development.

Caveat Emptor

A Latin phrase meaning "let the buyer beware," implying that the buyer assumes the risk regarding the quality of the goods purchased, unless they are protected by warranty.

Common Law

A body of law derived from judicial decisions of courts and similar tribunals, as opposed to statutes or constitutions.

Valid Deed

A valid deed is a legally enforceable document that effectively transfers ownership of real property from one party to another, and must meet specific requirements, including the signature of the grantor and delivery.