Which of the following is a TRUE statement?

Group of answer choices

A transaction is recorded in accounting if it has a measurable financial effect on the assets, liabilities or stockholders' equity of a business.

Separate entity assumption in accounting requires that the financial activities of the owners of a company be reported on the company's balance sheet.

The cost principle states that recording activities at cost will result in the balance sheet representing the true value of the company.

Conservatism requires accountants to intentionally understate assets.