The Accounting Principle That Requires Accounting Information to Be Based

question 125

Multiple Choice

The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange, is the:

• A) Accounting equation.
• B) Cost principle.
• C) Going-concern assumption.
• D) Realization principle.
• E) Business entity assumption.

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Definitions:

SRM

Supplier Relationship Management, a systematic approach for developing and managing partnerships with vendors and suppliers to improve product quality and reduce costs.

Cycle View

A perspective or methodology focusing on the repetitive process of order to delivery in the supply chain, emphasizing continuous improvement and efficiency.

Supply Chain

A supply chain represents the sequence of processes involved in the production and distribution of a commodity, from the sourcing of raw materials to the delivery of the final product to consumers.

Operational Decisions

Short-term choices made daily that affect the efficient operation of a business, including production, inventory, and staffing issues.