Which statement below is TRUE about the cost principle?
A)The cost principle says that all costs associated,directly or indirectly,with buying and using a long-term asset should be permanently capitalized.
B)The cost principle says that all costs reasonable and necessary to place an asset into a working condition should be capitalized.
C)The cost principle says that all costs associated with purchasing a long-term asset should be expensed in the period of the purchase.
D)The cost principle says that only the cash paid to acquire a long-term asset should be capitalized.

Question

Quizplus · Accepted Answer

The Answer is B

Which Statement Below Is TRUE About the Cost Principle