Which of the following statements is true concerning assets?
A)Assets are measured using a time-period approach.
B)Assets are initially recorded at market value and then adjusted for inflation.
C)Assets are initially recorded using the historical cost principle.
D)Assets are initially recorded at market value, since historical cost tends to be too arbitrary.

Question

Quizplus · Accepted Answer

Assets are initially recorded using the historical cost principle, which means they are recorded at the cost paid to acquire them, regardless of their current market value. This approach provides a reliable and objective measure of assets that can be audited and verified.

Which of the Following Statements Is True Concerning Assets