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:

Dividend Payout Ratio

A financial metric that shows the percentage of a company's earnings paid to shareholders in the form of dividends.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds a company's costs, commonly used to assess profitability.

Projected Addition

An estimate or forecast of the future increase in a specific metric such as revenue, profits, or assets.

External Financing

Funding obtained from outside of a company, rather than from its own earnings, to support its operations or growth. This can come from debt, equity, or other financial instruments.