The Cost Principle States That an Asset Should Be Recognized

question 89

Multiple Choice

The cost principle states that an asset should be recognized on the balance sheet:

• A) at the market value of the asset.
• B) at the market value less the accumulated depreciation on the asset.
• C) at its historical cost.
• D) at its historical cost plus the accumulated depreciation on the asset.

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Definitions:

Standard Deviation

A statistic that measures the dispersion or variation of a set of numerical values around their mean (average).

Off-Campus

Refers to activities, housing, or facilities that are not situated on the main campus of an educational institution.

T-Distribution

The T-distribution, or Student's t-distribution, is a probability distribution that estimates the population parameters when the sample size is small and the population standard deviation is unknown.

T Distribution

A statistical curve that shows the standard deviations of samples taken from a population and is used when the population standard deviation is unknown and the sample size is small.