3. Which of the following is not a characteristic of the cost principle?

A) Subjectivity B) Verifiability C) Reliability D) Objectivity

5.

Actup Company purchased a manufacturing facility for $20 million in 1999. The fair market value at the end of 2011 of the facility is $25 million. The facility will be reported on the 2011

balance sheet at

A)$5 million. B)$25 million. C)$20 million. D)$45 million