The principle that states that assets acquired by the business should be recorded at their exchange price is the:
A)subjectivity principle.
B)cost principle of measurement.
C)revenue-recognition principle.
D)matching principle.

Question

Quizplus · Accepted Answer

The cost principle of measurement, also known as the historical cost principle, dictates that assets should be recorded and reported at their original purchase price or exchange value at the time of acquisition, not at their current market value. This principle provides a clear, objective basis for recording the cost of assets.

The Principle That States That Assets Acquired by the Business