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

Question

Quizplus · Accepted Answer

The principle described in this question is historical cost, which requires that assets be recorded at their actual cost on the date of purchase. This principle ensures that the financial statements provide reliable and objective information about the company's assets and their worth at the time of acquisition. The other choices (objectivity, reliability, stable-monetary-unit) are also important accounting principles, but they do not directly relate to the recording of assets at their purchase cost.

The Principle Stating That Assets Acquired by the Business Should