Assets Are Initially Recorded at Cost

question 33

Multiple Choice

Assets are initially recorded at cost.What assumption/concept underlies this procedure?

• A) Accounting entity
• B) Monetary
• C) Historical cost
• D) Going concern

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Definitions:

Credit Card Expense

Expenses incurred through the use of a credit card, including purchases, interest charges, and other fees.

Net Sales

Net Sales are the revenue from the sale of goods or services minus returns, allowances for damaged or missing goods, and discounts.

Selling Expense

Costs incurred directly from the sale of products or services, excluding production costs.

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.