Which Accounting Concept or Principle Specifically States That We Should

question 36

Multiple Choice

Which accounting concept or principle specifically states that we should record transactions that can be verified?

• A)Going-concern concept
• B)Cost principle
• C)Reliability principle
• D)Business entity concept

---

Definitions:

Secured Interest

A legal claim or lien on assets or property, granted to a lender as security for the repayment of a debt, giving the lender rights to the collateral if the debt is not repaid.

Commercially Reasonable

A standard in law and business that measures actions against what a reasonable person engaged in commerce would believe is acceptable or customary practice.

Repossessed Vehicle

A vehicle taken back by a lender or seller from the buyer due to failure to make agreed payments.

Deficiency

The difference between the amount owed on a loan and the proceeds from the sale of the asset securing the loan, if the sale amount does not cover the loan balance.