According to Generally Accepted Accounting Principles,a Company's Balance Sheet Should

question 168

Multiple Choice

According to generally accepted accounting principles,a company's balance sheet should show the company's assets at:

• A) The cash equivalent value of what was given up or the asset received,whichever is more clearly evident.
• B) The market value of the asset received in all cases.
• C) The cash outlay only,even if part of the consideration given was something other than cash.
• D) The best estimate of a certified internal auditor.
• E) Current replacement cost.

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Definitions:

Direct Materials Cost

The expenditure on raw materials that can be directly attributed to the production of a specific product.

Direct Labour-Hours

The hours worked directly on the production of goods or services by employees.

Job-Order Costing System

A job-order costing system is an accounting method that assigns manufacturing costs to individual products or job orders based on the specific resources each job consumes.

Process Costing

An accounting methodology used in industries where production is continuous, assigning costs to units of product based on the process they have undergone.