Which of the Following Concepts (Or Principles)would Require That an Item

question 133

Multiple Choice

Which of the following concepts (or principles) would require that an item be recorded at the amount actually paid rather than at the estimated market value?

• A) Going-concern concept
• B) Entity concept
• C) Cost principle
• D) Stable monetary unit concept

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Definitions:

External Constituencies

Groups or individuals outside an organization that are affected by its decisions and actions, such as customers, suppliers, and the community.

Failure Theories

A set of theories explaining the conditions under which materials or components fail due to stress, fatigue, or other factors.

Governments

Formal institutions and structures that hold the authority to make and enforce laws and policies within a specific territorial boundary or country.

Functions

Activities or roles that are natural to or the purpose of a person or thing.