1) The cost principle requires that when assets are acquired, they be recorded at __.

A. list price

B. selling price

C. exchange price paid

D. appraisal value

2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __.

A. have been approved for use by the managements of business firms

B. have been approved by the Internal Revenue Service

C. have substantial authoritative support

D. are proven theories of accounting

3) The standards and rules that are recognized as a general guide for financial reporting are called __.

A. standards of financial reporting

B. operating guidelines

C. generally accepted accounting principles

D. generally accepted accounting standards

4) Sam's Used Cars uses the...