The Accounting Convention That Means Only Those Transactions That Are

question 63

Multiple Choice

The accounting convention that means only those transactions that are capable of being expressed in monetary terms are recorded, is the:

• A)money measurement convention.
• B)historical cost convention.
• C)conservatism convention.
• D)reliability convention.

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Definitions:

Garbage Disposal

A device installed under a kitchen sink that shreds food waste into small pieces to pass through plumbing.

Recycling

The process of converting waste materials into new products to prevent waste of potentially useful materials, reduce consumption of fresh raw materials, and lower energy usage and pollution.

Marginal Benefit

The additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Marginal External Damages

Additional harm or cost imposed on society or a third party that is not accounted for by the producer or consumer of a good or service.