The Principle That States That Assets Acquired by the Business

question 143

Multiple Choice

The principle that states that assets acquired by the business should be recorded at their actual price is the:

• A) objectivity assumption
• B) stable monetary unit assumption
• C) cost assumption
• D) reliability assumption

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Definitions:

Equilibrium Price

The cost at which the amount of a product consumers want to buy matches the amount producers are willing to sell, leading to equilibrium in the market.

Gigabyte

A unit of digital information storage equivalent to approximately 1 billion bytes (1,000 megabytes).

Computer Memory

A device or system used to store digital information for immediate use in a computer or related computer hardware.

Equilibrium Price

The price at which the quantity of a product demanded by consumers equals the quantity supplied by producers.