The Cost Principle Calls for the Recognition of All Accounting

question 7

Essay

The cost principle calls for the recognition of all accounting transactions at their current market value.

---

Definitions:

Presentment

A demand for acceptance or payment of a negotiable instrument made upon the maker, acceptor, or drawee by or on behalf of the holder of the instrument.

Instrument

A legal document formally evidencing an obligation or right, such as checks, promissory notes, or securities.

Holder

A person who is in possession of a negotiable instrument that is issued or indorsed to that person’s order or to bearer.

Negotiable Instrument

A written document that is signed by the maker or drawer and that contains an unconditional promise or order to pay a certain sum of money on delivery or at a definite time to the bearer or to order.