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When a Machinery Is Purchased for Cash, the Cash Balance

Question 67

Multiple Choice

When a machinery is purchased for cash, the cash balance is reduced and to that extent, the amount of machinery as an asset is recorded. This is done to follow which of the following accounting principles:


A) Dual Aspect Principle
B) Materiality Principle
C) Timeliness Principle
D) Consistency Principle

Correct Answer:

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