The Principle Stating That Assets Acquired by the Business Should

question 119

Multiple Choice

The principle stating that assets acquired by the business should be recorded at their actual cost on the date of purchase is the:

• A)historical cost principle.
• B)objectivity principle.
• C)reliability principle.
• D)stable dollar principle.

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Definitions:

Flexible Exchange-rate

A currency system where the value of a currency is allowed to fluctuate according to the foreign exchange market without direct intervention by the country's government.

European Euro

The official currency of the eurozone, which is used by many of the European Union's member states as their primary currency.

U.S. Dollar

The sanctioned monetary unit of the United States, commonly employed worldwide as a reference and reserve currency.

Fixed Exchange-rate System

A currency value regime where a country's currency is pegged at a set value to another currency, a basket of currencies, or a commodity like gold.