The measurement principle, also called the cost principle:
A. Prescribes that a company report the details behind financial statements that would impact users' decisions.
B. Prescribes that accounting information is based on actual cost.
C. Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
D. Prescribes that a company record the expenses it incurred to generate the revenue reported.
E. Provides guidance on when a company must recognize revenue.
Answer: B
You might also like to view...
To better manage its human resources, the management of Bart, a pharmaceutical company, decides to create a separate department that would be responsible for hiring skilled employees, dealing with government regulations, and managing behavioral issues. The given scenario illustrates the concept of _____.
A. personnel management B. scientific management C. outsourcing D. licensing
Sparrow Corporation The items listed below were identified while preparing a bank reconciliation for the checking account of Sparrow Corporation as of March 31, 2012. Sparrow's balance according to the general ledger ? Bank statement balance $18,500 Outstanding checks 2,700 A customer's NSF check returned by the bank 350 Bank service charges 100 Deposits in transit 1,000 Interest earned on the
checking account 60 Refer to the information presented for Sparrow Corporation. How will the deposits in transit be handled within a bank reconciliation? A) Add to the balance from the company records B) Subtract from the balance from the company records C) Add to the bank statement balance D) Subtract from the bank statement balance
The purpose of a problem statement is to find the problem cause and to define the solution.
Answer the following statement true (T) or false (F)
SQL is considered difficult to learn; its command set has a vocabulary of more than 300 words
a. True b. False Indicate whether the statement is true or false