Which of the Following Accounting Principles Would Require That All

question 106

Multiple Choice

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

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

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Definitions:

End-of-period Spreadsheet

A financial document summarizing a company's financial data at the end of an accounting period, including assets, liabilities, and equity.

Income Statement

The income statement is a financial document that shows a company's revenues, expenses, and net income over a specific period.

Statement of Owner's Equity

A financial statement that outlines the changes in the equity of a company or individual over a specific period, detailing contributions, withdrawals, and the overall profit or loss.

End-of-period Spreadsheet

A tool used in accounting to compile all account balances and adjustments at the end of a period in order to prepare financial statements.