According to the ________,Acquired Assets Should Be Recorded at the Amount

question 106

Multiple Choice

According to the ________,acquired assets should be recorded at the amount actually paid rather than at the estimated market value.

• A) going concern assumption
• B) economic entity concept
• C) cost principle
• D) monetary unit assumption

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Definitions:

Translation Adjustment

An accounting entry that reflects the impact of currency fluctuations in the financial statements of a company with operations in foreign currencies.

Foreign Currency

Currency used that is not the domestic currency of the country in which a transaction is being conducted.

Net Asset Balance Sheet Exposure

The risk that the value of a company's assets minus its liabilities, measured in its reporting currency, will decrease due to foreign exchange rate fluctuations.

Translation Adjustment

An adjustment made in the financial statements to account for exchange rate variations in translating operations of foreign subsidiaries into the parent company’s reporting currency.