Since cost is a reliable measure,the cost principle holds that the accounting records should continue reporting an asset at its historical cost over its useful life.

Question

Quizplus · Accepted Answer

The statement is correct. The cost principle in accounting requires that assets be recorded at their historical cost and reported in financial statements at that value over the asset's useful life. This ensures that the financial statements are reliable and consistent over time.

Since Cost Is a Reliable Measure,the Cost Principle Holds That