The cost principle is used:
A)to refer to the two sources of financing available to businesses.
B)to measure the amount used to record assets on the date of the transaction.
C)by small businesses,but not by large businesses.
D)to measure internal events,but not external exchanges.

Question

Quizplus · Accepted Answer

The cost principle states that assets and liabilities should be initially recorded at their original cost to the company.

The Cost Principle Is Used