Using historical cost,at what time are assets recorded at the amount of cash or cash equivalents paid,or the fair value of the consideration given to acquire them?
A) Time of their designing
B) Time of their depreciation
C) Time of their acquisition
D) Time of their disposal

Question

Quizplus · Accepted Answer

Assets are recorded at historical cost at the time of their acquisition, which refers to the point when the entity gains control over the asset and recognizes it as an asset in its financial statements. Historical cost includes both the cash or cash equivalents paid and the fair value of any other consideration given to acquire the asset. Therefore, the answer is C - time of acquisition.

Using Historical Cost,at What Time Are Assets Recorded at the Amount