Which of the Following Is Not a Generally Accepted Accounting

question 118

Multiple Choice

Which of the following is not a generally accepted accounting principle relating to the valuation of assets?

• A)The cost principle - in general,assets are valued at cost,rather than at estimated market values.
• B)The objectivity principle - accountants prefer to use objective,rather than subjective,information as the basis for accounting information.
• C)The safety principle - assets are valued at no more than the value for which they are insured.
• D)The going-concern assumption - one reason for valuing assets such as buildings and equipment at cost rather than at their current market values is the assumption that the business will use these assets rather than sell them.

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Definitions:

Birthday Rule

A rule that states that the insurance policy of a policyholder whose birthday comes first in the year is the primary payer for all dependents.

Birthday Rule

An insurance policy determination rule that establishes priority of coverage for a child when covered by both parents' plans; typically, the parent whose birthday occurs first in the calendar year holds the primary plan.

Primary Payer

The insurance or funding source that is responsible for paying a claim first, before any other coverage is considered.

Fee Schedule

A list of the costs of common services and procedures performed by a physician.