The historical cost concept requires that most assets be reported at the amount paid for them.

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The historical cost concept, also known as the cost principle, requires that most assets be reported on the balance sheet at their original cost or purchase price. This means that the value of an asset on the financial statements is based on what was paid for it initially, rather than any subsequent changes in its market value or resale price. The historical cost concept is one of the fundamental accounting principles used to ensure consistency and accuracy in financial reporting.

The Historical Cost Concept Requires That Most Assets Be Reported