Decision 4 Is an Example of a _____ Decision

question 87

Multiple Choice

Decision 4 is an example of a _____ decision.

• A) programmed
• B) nonprogrammed
• C) trivial
• D) certain
• E) risk-free

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Definitions:

Historical Cost Principle

A fundamental accounting rule stating that assets must be logged and presented at the cost they were originally bought for.

Going Concern Principle

An accounting assumption that a company will continue operating and not go bankrupt or be liquidated in the foreseeable future.

Straight-Line Deprecation

A method of calculating the depreciation of an asset, dividing its cost by the number of years it is expected to be useful.

Book Value

The net value of a company's assets, found by deducting total liabilities and intangible assets from total assets.