According to the Cost Principle, It Is Acceptable for Managers

question 214

True/False

According to the cost principle, it is acceptable for managers to use their own estimate of an asset's value when recording the purchase.

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Definitions:

Business Expenses

Costs incurred in the ordinary course of business, including salaries, utilities, and rent.

Income Statement

A financial report that shows a company's revenues and expenses over a specific period, culminating in the net income or loss for that period.

Asset

Economic resources owned or controlled by an entity that are expected to produce value.

Liability

Financial obligations or debts a company owes to others.