Which of the Following Accounting Principles Require That All Goods

question 38

Multiple Choice

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

• A)Going-concern assumption.
• B)Matching principle.
• C)Cost principle.
• D)Business entity assumption.
• E)Consideration assumption.

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Definitions:

Shortages

A market situation in which the demand for a product exceeds its supply at a particular price.

Farm Price-Support Programs

Government initiatives designed to stabilize or increase prices of agricultural products by buying excess supply, providing subsidies, or setting minimum prices.

Consumers

People or organizations who buy products and services for their own consumption.

Low-Income Consumers

Individuals or households with earnings that fall below a certain threshold, often qualifying them for specific benefits or considerations.