Which of the Following Best Describes the Proper Treatment of Cash

question 77

Multiple Choice

Which of the following best describes the proper treatment of cash discounts on acquired machinery?

• A) The historical cost of the machinery should be the invoice price;the discount should be ignored.
• B) The historical cost of the machinery should be the net-of-discount amount,regardless of whether the discount is actually taken.
• C) The historical cost of the machinery should be the net-of-discount amount only if the discount is actually taken.
• D) The historical cost of the machinery should be the invoice price plus the amount of the discount which is treated a interest capitalized on the purchase.

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Definitions:

Troposphere

The lowest layer of Earth's atmosphere where weather happens and where most of the atmospheric water vapor exists.

Troposphere

The troposphere is the lowest layer of Earth's atmosphere, where most weather phenomena occur, extending from the Earth's surface to about 8 to 15 kilometers above.

Stratosphere

The stratosphere is a layer of the Earth's atmosphere located above the troposphere, characterized by a slight temperature increase with altitude and the presence of the ozone layer.

Ozone

A molecule composed of three oxygen atoms, found in the Earth's stratosphere, where it plays a critical role in protecting living organisms from ultraviolet radiation.