Which Statement Below Is TRUE About the Cost Principle

question 37

Multiple Choice

Which statement below is TRUE about the cost principle?

• A)The cost principle says that all costs associated,directly or indirectly,with buying and using a long-term asset should be permanently capitalized.
• B)The cost principle says that all costs reasonable and necessary to place an asset into a working condition should be capitalized.
• C)The cost principle says that all costs associated with purchasing a long-term asset should be expensed in the period of the purchase.
• D)The cost principle says that only the cash paid to acquire a long-term asset should be capitalized.

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Definitions:

Sexual Dysfunction

A problem occurring during any phase of the sexual response cycle, preventing individuals or couples from experiencing satisfaction.

Functioning

The action of operating or working in a proper or particular way.

Sexual Activity

Behavioral acts that include direct sexual contact and arousal between individuals, which may or may not involve intercourse.

Herpes

A group of viral infections causing sores and blisters on different parts of the body, most commonly on the mouth or genitals.