Under the Cost Principle

question 118

Multiple Choice

Under the cost principle:

• A)only reasonable and necessary costs of acquiring an asset should be recorded as a cost of the asset.
• B)costs of preparing an asset for use should never be recorded as part of the cost of the asset.
• C)all reasonable and necessary costs of acquiring an asset and preparing it for use should be recorded as a cost of the asset.
• D)only the actual purchase price of the asset is recorded as the cost of the asset.

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Definitions:

Application Analysis

The process of examining and evaluating the features, functionality, and performance of software applications.

Media Industry

A sector comprising companies and entities that produce and distribute content through various platforms such as television, radio, internet, and print.

Influencing

The act of impacting or swaying the behaviors, beliefs, or opinions of others through various means, often seen in contexts such as social media.

Changes

The process through which something becomes different or the act of making something different.