The cost principle is the basis for entering the purchase price into the accounting records.

Name: The cost principle is the basis for entering the purchase price into the accounting records.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The cost principle is a fundamental accounting principle that requires assets to be recorded at their original cost upon acquisition. This means that the purchase price of an asset is the basis for entering it into the accounting records. Therefore, answer A is correct.

The Cost Principle Is the Basis for Entering the Purchase