Assets Are Initially Recorded at Cost

question 33

Multiple Choice

Assets are initially recorded at cost.What assumption/concept underlies this procedure?

• A) Accounting entity
• B) Monetary
• C) Historical cost
• D) Going concern

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Definitions:

Budgeted Volume

The anticipated quantity or amount of sales, production, or activity planned for a future period.

Ending Inventory

The value of goods available for sale at the end of an accounting period.

Expected Sales

Forecasted or projected revenue figures estimated from future sales over a specific period.

Flexible Budgeting

A budgeting process that allows for adjustments to budgetary allocations based on changes in actual performance, revenue, or other factors.