An Asset Should Be Recorded at Cost in Conformity with the Historical

question 73

Multiple Choice

An asset should be recorded at cost in conformity with the historical cost principle except:

• A) in an exchange of similar assets when the book value of the asset given is equal to the market price of the asset received.
• B) in an exchange of dissimilar assets.
• C) when a capital asset is donated to a company.
• D) when a capital asset is acquired with a note that specifies an unrealistic interest rate.

---

Definitions:

Feminine-looking

Refers to physical attributes or appearance commonly associated with traditional female characteristics.

Genetic Male

An individual with one X chromosome and one Y chromosome in the pair of sex chromosomes, leading to the development of male physical characteristics.

Genetic Female

Refers to individuals whose sex chromosomes are XX, typically associated with female sexual and reproductive anatomy.

Estrogen

A group of steroid hormones that play an essential role in the development and regulation of the female reproductive system and secondary sexual characteristics.