The principle stating that assets acquired by the business should be recorded at their actual cost on the date of purchase is the:
A)historical cost principle.
B)objectivity principle.
C)reliability principle.
D)stable dollar principle.

Question

Quizplus · Accepted Answer

The principle stating that assets acquired by the business should be recorded at their actual cost on the date of purchase is the historical cost principle. This principle requires that the cost of an asset be recorded at its original cost, which includes all expenditures necessary to acquire and prepare the asset for its intended use. This principle provides a reliable and objective basis for recording asset values on the balance sheet.

The Principle Stating That Assets Acquired by the Business Should