Which of the following statements is not correct? Group of answer choices a) Periodic allocations of acquisition cost, made on a systematic and rational basis, are recognized as current expense in conformity with the matching principle. c) At acquisition, tangible, operational assets are recorded at cost on the basis of the cost principle. d) Subsequent to acquisition, tangible operational assets that have a limited life are reported at the cost recognized at acquisition less accumulated allocations of such cost. b) Depreciation accounting is a process of valuation, not of allocation.
Which of the following statements is not correct? Group of answer choices a) Periodic allocations of acquisition cost, made on a systematic and rational basis, are recognized as current expense in conformity with the matching principle. c) At acquisition, tangible, operational assets are recorded at cost on the basis of the cost principle. d) Subsequent to acquisition, tangible operational assets that have a limited life are reported at the cost recognized at acquisition less accumulated allocations of such cost. b) Depreciation accounting is a process of valuation, not of allocation.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Which of the following statements is not correct?
Group of answer choices
a) Periodic allocations of acquisition cost, made on a systematic and rational basis, are recognized as current expense in conformity with the matching principle.
c) At acquisition, tangible, operational assets are recorded at cost on the basis of the cost principle.
d) Subsequent to acquisition, tangible operational assets that have a limited life are reported at the cost recognized at acquisition less accumulated allocations of such cost.
b) Depreciation accounting is a process of valuation, not of allocation.
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