The Accounting Principle That Requires Accounting Information to Be Based

question 60

Multiple Choice

The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the amount of cash or cash equivalent given in exchange is the:

• A)Accounting equation
• B)Cost principle
• C)Going-concern principle
• D)Realization principle
• E)Business entity principle

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Definitions:

Bomb Calorimeter

An apparatus used for measuring the heat of combustion of a particular reaction.

Combustion

A chemical process involving the rapid oxidation of substances, resulting in the release of energy, light, and heat.

Activation Energy

The minimum amount of energy that must be provided to compounds to induce a chemical reaction.

Pyrolysis

The chemical decomposition of a substance through the application of heat, in the absence of oxygen.