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.

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Definitions:

PAX6 Gene

A gene crucial for the development of the eyes, brain, and pancreas in mammals, mutations in which can lead to various eye disorders.

Eyeless Mutant

A type of mutation, often studied in genetic research, that results in the absence of eyes in organisms due to specific genetic alterations.

Expressed

The process by which information from a gene is used in the synthesis of a functional gene product, often a protein.

Activators

Molecules or compounds that increase the activity of enzymes or other proteins, often playing crucial roles in metabolic pathways.