The Accounting Concept That Indicates Assets Should Be Reported at the Price

question 113

Multiple Choice

The accounting concept that indicates assets should be reported at the price received to sell the asset at the reporting date is the

• A)economic entity assumption.
• B)monetary unit assumption.
• C)fair value principle.
• D)historical cost principle.

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Definitions:

Apparent Authority

The appearance or assumption of authority based on the actions of the principal, leading others to believe that an agent has the authority to act.

Implied Authority

The power assumed to be held by an agent or employee, based on their role or position, allowing them to perform acts necessary to fulfill their duties.

Salesmanship

The skills, techniques, and art involved in effectively persuading and selling goods or services to consumers.

Commission Basis

A compensation structure where payments are made based on performance, typically a percentage of sales generated.