The principle stating that assets acquired by the business should be recorded at their actual cost on the date of purchase is the:
A)cost principle.
B)objectivity principle.
C)reliability principle.
D)stable dollar principle.

Question

Quizplus · Accepted Answer

The cost principle requires that businesses record the assets they acquire at their actual cost on the date of purchase, which helps ensure that the financial statements are reliable and objective. This principle also helps prevent the overstatement of assets on the balance sheet.

The Principle Stating That Assets Acquired by the Business Should