Which of the Following Statements Is Characteristic of Assets

question 143

Multiple Choice

Which of the following statements is characteristic of assets?

• A) Assets are measured using a time-period approach.
• B) Assets are initially recorded at market value and then adjusted for inflation.
• C) Assets are initially recorded using the historical cost principle.
• D) Assets are initially recorded at market value, since historical cost tends to be too arbitrary.

Prepare detailed journal entries for complex transactions involving property, plant, and equipment, including exchanges and renovations.

Apply accounting principles to real-world scenarios involving asset management, emphasizing accuracy in financial reporting.

Understand the basic components and functions of computers and mobile devices.

Comprehend digital literacy and its importance.

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Definitions:

Adjusting Entry

An entry made at the end of an accounting period to allocate revenues and expenses to the correct period.

Annual Rent

The total amount of money paid for the use of property or equipment for a year.

Adjusting Entries

Documentation made at the culmination of an accounting period, aiming to allocate revenues and expenses to the correct timeframe of their occurrence.

Fiscal Year

A one-year period used for financial reporting and budgeting, which may not align with the calendar year.