According to the Cost Principle,it Is Preferable for Managers to Report

question 186

True/False

According to the cost principle,it is preferable for managers to report the most current estimate of an asset's value.

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Definitions:

Current Asset

Assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of the business, whichever is longer.

Current Liability

A company's debts or obligations that are due within one year, appearing on the company's balance sheet and including short-term borrowing, accounts payable, and other liabilities.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

Expense

is an outflow of cash or other valuable assets from a person or company to another entity, representing the cost of operations or services rendered.