The Cost Principle Requires That an Asset Be Recorded at the Cash

question 163

True/False

The cost principle requires that an asset be recorded at the cash or cash equivalent amount given in exchange.

---

Definitions:

Labor Relations

The study and practice of managing relationships between employers and employees, focusing on negotiation, implementation of agreements, and resolution of disputes.

Industrialization

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods.

Historical Rate

An exchange rate used to convert amounts related to transactions in foreign currencies based on the rate in effect at the time of the original transaction.

Closing Rate

Closing Rate refers to the exchange rate between two currencies at the end of a trading period, used in accounting to convert the financial statements of foreign subsidiaries.