The Accounting Convention That Requires Items in the Statement of Financial

question 72

Multiple Choice

The accounting convention that requires items in the statement of financial position to be valued at their acquisition cost is the:

• A)matching convention.
• B)realisation convention.
• C)money measurement convention.
• D)historic cost convention.

---

Definitions:

Cash Receipts

The collection of money, including coins, notes, and electronic transfers, received by a business during its normal operations.

Over-The-Counter

A decentralized market where securities not listed on formal exchanges are traded directly between parties.

Voucher System

An internal control mechanism in accounting, where documents (vouchers) are prepared for every transaction involving the payment of cash or transfer of funds.

Documentation

Written or electronic records that provide evidence of transactions, processes, or agreements.