Which of the Following Accounting Principles Would Require That All

question 33

Multiple Choice

Which of the following accounting principles would require that all goods and services purchased be recorded at cost?

• A) Going concern principle.
• B) Monetary unit principle.
• C) Cost principle.
• D) Business entity principle.
• E) Revenue recognition principle.

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Definitions:

Implied Warranty

A legal concept that assumes a product will meet certain standards of quality and reliability without being explicitly stated.

Physical Nature

The intrinsic physical characteristics and properties of an object or person.

Specific Performance

A legal remedy in which a court orders the party at fault to fulfill their obligations under a contract, rather than providing monetary compensation.

Substitute Goods

Products or services that can be used in place of each other; availability of one affects the demand for another.