accounting principles require goods services purchased recorded cost quizlet

Which of the following accounting principles would require that all goods and services purchased be recorded at cost quizlet?

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Terms in this set (25)

On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of stockholders' equity as of May 31 of the current year?

Andrea Apple opened Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books:
1. Andrea invested $13,500 cash in the business in exchange for common stock.
2. Andrea contributed $20,000 of photography equipment to the business in exchange for common stock.
3. The company paid $2,100 cash for office furniture.
4. The company received $5,700 cash for services provided during January.
5. The company purchased $6,200 of office equipment on credit.
6. The company provided $2,750 of services to customers on account.
7. The company paid cash of $1,500 for monthly rent.
8. The company paid $3,100 on the office equipment purchased in transaction #5 above.
9. Paid $275 cash for January utilities.
Based on this information, the amount reported as total stockholders' equity on the balance sheet at month-end would be:

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Which of the following accounting principles would require that all goods and services purchased be recorded?

Answer and Explanation: The correct answer is b. Cost principle. This is because this principle suggests that the goods should be recorded in the book at their actual actual cost only.

Which of the following accounting principles would prescribe that all goods and services purchased be recorded at cost?

Cost principle. All short-term and long-term assets are recorded at the value at which they are acquired rather than their market value.

What principle states that assets should be recorded at the value exchanged at the time the asset is acquired?

The cost principle is one of the basic underlying guidelines in accounting. It is also known as the historical cost principle. The cost principle requires that assets be recorded at the cash amount (or the equivalent) at the time that an asset is acquired.

What is the expense recognition principle quizlet?

Expense recognition principle. (or matching) principle aims to record expenses in the same accounting period as the revenues that are earned as a result of those expenses.

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