The Measurement Principle, Also Called the Cost Principle

Multiple Choice

The measurement principle, also called the cost principle:

A) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
B) Prescribes that a company record the expenses it incurred to generate the revenue reported.
C) Prescribes that a company report the details behind financial statements that would impact users' decisions.
D) Provides guidance on when a company must recognize revenue.
E) Prescribes that accounting information is based on actual cost.