Which of the following accounting principles would prescribe that all goods and services purchased are recorded at cost?
A)Going-concern principle
B)Continuing-concern principle
C)Cost principle
D)Business entity principle
E)Consideration principle

Question

Quizplus · Accepted Answer

The cost principle requires that all purchases be recorded at their historical cost, which is the amount paid or the consideration given to acquire an asset or service. This principle ensures that the financial statements reflect the actual amount paid for the goods and a realistic picture of the company's financial position.

Which of the Following Accounting Principles Would Prescribe That All