Which of the Following Is a TRUE Statement

Multiple Choice

Which of the following is a TRUE statement?

A) Conservatism requires accountants to intentionally understate assets.
B) Separate entity assumption in accounting requires that the financial activities of the owners of a company be reported on the company's balance sheet.
C) The cost principle states that recording activities at cost will result in the balance sheet representing the true value of the company.
D) A transaction is recorded in accounting if it has a measurable financial effect on the assets,liabilities or stockholders' equity of a business.