The Principle Stating That Assets Acquired by the Business Should

question 83

Multiple Choice

The principle stating that assets acquired by the business should be recorded at their actual cost on the date of purchase is the:

• A)cost principle.
• B)objectivity principle.
• C)reliability principle.
• D)stable dollar principle.

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Definitions:

Fiat Currencies

Money that a government has declared to be legal tender, but it is not backed by a physical commodity.

Cryptocurrencies

Electronic currencies employing cryptography to secure transactions and operating autonomously from any central banking institution.

Legal Tender

Currency that must be accepted if offered in payment of a debt, officially issued by a government or monetary authority.

Cryptocurrencies

Digital or virtual currencies that use cryptography for security and operate independently of a central bank, exemplified by Bitcoin and Ethereum.