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Homework answers / question archive / The cost principle requires that when assets are acquired, they be recorded at exchange price paid

The cost principle requires that when assets are acquired, they be recorded at exchange price paid

Accounting

The cost principle requires that when assets are acquired, they be recorded at

exchange price paid.

appraisal value.

market price.

historical cost.

pur-new-sol

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Answer:

The cost principle is an accounting principle that requires assets, liabilities and equities investments to be recorded on financial records at there orginal cost.

According to cost principle transactions should be recorded on financial records at there historical cost. The cost principle is also known as historical cost principle and historical cost concept.

So answer is historical cost.