Which of the Following Accounting Principles Would Prescribe That All

question 157

Multiple Choice

Which of the following accounting principles would prescribe that all goods and services purchased are recorded at cost?

• A)Going-concern principle
• B)Continuing-concern principle
• C)Cost principle
• D)Business entity principle
• E)Consideration principle

---

Definitions:

Break-even Point

The production level or sales volume at which total revenues equal total expenses, leading to no profit or loss.

Unit Variable Cost

The cost that varies with each unit produced, including direct materials and labor, but does not include fixed costs.

Property Tax Rates

The percentage of a property's assessed value that is charged as tax by local governments to fund public expenses.

Break-even Point

The sales level at which total revenues equate to total costs, resulting in no profit or loss, indicating the minimum sales necessary to cover all expenses.