The Measurement Principle, Also Called the Cost Principle

question 13

Multiple Choice

The measurement principle, also called the cost principle:

• A) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
• B) Prescribes that a company record the expenses it incurred to generate the revenue reported.
• C) Prescribes that a company report the details behind financial statements that would impact users' decisions.
• D) Provides guidance on when a company must recognize revenue.
• E) Prescribes that accounting information is based on actual cost.

---

Definitions:

Effective Delegation

The process by which a leader assigns responsibility and authority to others, empowering them to complete tasks.

Suitable Person

An individual deemed appropriate or fitting for a particular role, position, or situation based on their qualities or qualifications.

Defining Task

A task or activity that is crucial in determining or clarifying the nature, scope, or identity of a project or goal.

John Holland's Model

A theory of career and vocational choice based upon personality types, suggesting that people are more satisfied and productive if their work environments match their personal orientations.