The historical cost principle requires that when assets are acquired they be recorded at
A) appraisal value.
B) cost.
C) market price.
D) book value.

Question

Quizplus · Accepted Answer

The historical cost principle requires that when assets are acquired, they should be recorded at cost. This means that the cost of the asset at the time of purchase is used as the basis for recording and reporting the asset in financial statements. This principle ensures that the financial statements provide reliable and accurate information to users, as it reflects the actual cost of acquiring the asset rather than an estimated or subjective value.

The Historical Cost Principle Requires That When Assets Are Acquired