Which of the Following Statements Is Not Correct

question 2

Multiple Choice

Which of the following statements is not correct?

• A) Periodic allocations of acquisition cost, made on a systematic and rational basis, are recognized as current expense in conformity with the matching principle.
• B) Amortization accounting is a process of valuation, not of allocation.
• C) At acquisition, tangible, capital assets are recorded at cost on the basis of the cost principle.
• D) Subsequent to acquisition, tangible capital assets that have a limited life are reported at the cost recognized at acquisition less accumulated allocations of such cost.

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Definitions:

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, helping businesses manage their cash flow.

Economic Activities

Actions that involve the production, distribution, and consumption of goods and services in an economy.

Economic Condition

Economic Condition refers to the state of an economy at a given time, considering factors like GDP growth rates, unemployment, inflation, and market stability.

Accounting

The systematic process of recording, analyzing, and interpreting the financial transactions of a business.